Lower - rated or high - yield debt securities involve greater credit risk, including the possibility of default or bankruptcy. (us.beyondbullsandbears.com)
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market. (morganstanley.com)
Notes with greater credit risk are assigned higher interest rates. (lendingclub.com)