High Yield Bonds (a.k.a. junk bonds, speculative-grade bonds) — unsecured debt rated below BBB− (S&P) / Baa3 (Moody's). Carry higher coupons (5–10%+) than investment-grade debt to compensate for elevated default risk; use incurrence covenants (tested only when the issuer takes an action) rather than maintenance covenants; and feature explicit call protection (non-call periods plus declining call premiums).