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High yield bonds, also known as speculative or junk bonds, are typically issued by companies with weaker financials and/or cash flow stability such that they are deemed to have higher default risk. For that same reason, they are offered at a higher yield compared to investment grade bonds to compensate for the higher risk of holding onto the bond. In recent years, high yield bond issuance in Asia has been dominated by Chinese issuers, particularly corporates operating in the real estate sector. The large supply of new bonds from these issuers have been met with strong demand from investors who are looking to earn a higher yield.