Generally fixed-income (fixed-interest bearing) securities that have been poorly classified by rating agencies or, in the opinion of financial market players, correspond to such a classification. Almost all emerging market government bonds belong to this group of securities. Because of their poor credit rating, such securities usually carry a correspondingly higher interest rate or can be bought at a price far below their nominal value, which is where the – initially unusual – name comes from. – In particular also – corporate bonds with considerable yields at – however also high creditworthiness risk. The price of the securities usually closely follows the share price of the respective issuer, insofar as these are stock corporations. – See Fallen Angels, Low Coupon Papers – ECB Monthly Report July 2004, p. 23 et seq. (also comparisons with the U.S.), BaFin Annual Report 2010, p. 99 (insurance companies may invest up to five percent of their tied assets in high yields).
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