Are high yield corporate bonds insured?

High yield corporate bonds, also called junk bonds, are issued by companies with a high risk of defaulting on their bond payments. This type of bond is also more susceptible to economic fluctuations than higher-rated bonds. If the company defaults, bondholders may not receive their promised payments from the bonds. However, in the event that the issuing company itself is liquidated, unsecured bondholders have a prioritized claim on the assets of the company. So, high yield corporate bonds are not "insured," and you may end up losing money. However, you may have a way to get your money back if the company defaults.