Lose money after investing in a GPB Capital Holdings Fund? take action
We can help recover your investment loss. Free consultations, always. CONTACT US

Risks of High-Yield Bonds

High-yield bonds, also known as junk bonds, can be extremely profitable for investors. However, they are not suitable for every investor. In fact, only investors who understand the risks of high-yield bonds and accept the fact that they could lose their investment should consider investing in junk bonds.

Below, we go into further detail about what high-yield bonds are, how they work, and what you can do to recover your investment if you lose money after investing in junk bonds.

What Are High-Yield Bonds and How Do They Work?

High-yield bonds have the potential to be a good investment for investors, but they are also very risky. Also known as junk bonds, high-yield bonds are bonds that have a high risk of defaulting. The bond is rated below investment grade and therefore able to produce high returns due to the high interest rate of the bond.

Put simply, think of a junk bond as a high-interest loan given to someone (i.e. a company) with a poor credit rating. If the company pays back the loan, the investor who purchased the bond will make their money back, with interest. But if they default, the investor may lose their investment altogether if the bond cannot be recouped.

FINRA Arbitration for Junk Bonds

High-yield bonds are not recommended for novice investors or those who are uncomfortable with high-risk investments. If your stockbroker or financial advisor suggested junk bonds without disclosing the risks, providing you with the information you needed to make an educated decision, or recommended high-yield bonds that did not align with the goals of your investment portfolio, you may have grounds for a FINRA arbitration claim.

Meet with an Investment Loss Lawyer

If your trusted stockbroker has wronged you by recommending that you invest in high-yield bonds when such an investment did not align with your portfolio objectives, contact a respected investment loss lawyer at Wolper Law Firm for help. Call us at 800.931.8452 or fill out the quick contact form on this page.

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.
or call 800.931.8452
Main Office - Fort Lauderdale

1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Phone: 800.931.8452

Additional Office Locations (by appointment only)

3355 Lenox Road
Suite 7
Atlanta, GA 30326


13295 N. Illinois St.
Suite 314
Indianapolis, IN 46032

New York City

275 Madison Avenue
Suite 705
New York, NY 10016


3102 Maple Ave.
Suite 400
Dallas, TX 75201


5933 NE Win Sivers Drive
Suite 205
Portland, OR 97220


7900 E. Union Ave.
Suite 1100
Denver, CO 80237


1700 Park Street
Suite 103
Naperville, IL 60563


1001 Fourth Ave.
Seattle, WA 98154