Word: bondses
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
As ever, diversification is the key. Only the wealthiest and most sophisticated investors should dabble in individual junk-bond issues. The risk of any single company's failing is too great. But a diverse portfolio--easily obtained through junk-bond mutual funds--brings the investment risk way down and makes...
Now that we're in a recession, a lot of junk looks more valuable: those "classic" sport jackets in your closet, the aging but paid-for SUV in your driveway--and, get this, the bonds of companies with poor credit. That may sound crazy at first. Recessions are always tough...
Junk bonds, on the other hand, have rarely been so cheap. They carry an average yield of about 12.25%, vs. about 5% for the benchmark 10-year Treasury bond. The difference between those yields, known as the spread, represents a hefty premium of 7.25 percentage points. The long-run average...
This pattern makes sense. Investors look ahead to recovery, when the default rate will drop and make the lush yields on junk bonds more secure. That leads investors to bid up junk-bond prices, resulting in a capital gain. "We've already seen some junk bonds rally," says John Fenn...
Junk bonds didn't get their name for no reason. If the recession worsens, default rates will continue to rise and returns will suffer. A period of widespread price deflation in goods and services, which some have argued is a risk, would be especially tough on companies struggling with hefty...