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Hedging
Hedging is an investment technique designed to offset, or neutralize, a potential loss on one investment by purchasing a second investment that you expect to perform in the opposite way. For example, you might sell short one share, expecting its price to drop. At the same time, you might buy a call option on the same share as insurance against a large increase in value.

High-yield bond
Low-rated bonds pose greater risk of default than higher-rated bonds. As a result, their issuers must pay investors a higher rate of interest to offset that risk, and the higher rate, in turn, provides a higher yield. Bonds that fit that description are called high-yield bonds, but may also be described, somewhat more graphically, as junk bonds.