Questions tagged [junk-bonds]

A junk bond (high-yield bond, or non-investment-grade bond) is a bond that is rated below investment grade. These bonds have a higher risk of default or adverse credit events, but they offer higher yields than investment-grade bonds.

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Impact of rising interest rates on default risk of existing junk bonds?

When interest rates rise, we all know that Math shows that the value of a bond will drop, but that's not my question. Intuition says that there's an indirect risk, in that rising rates might hurt ...
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Dividend amounts -- not just yield -- from my bond fund decreased over the past 18 months

Why? I'm not questioning the yield percentage, which I know has dropped; it's the dollar amounts that puzzle me. I'd have expected the price of VWEAX to have risen (it's increased 1.71% in that time ...
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Can companies deliberately cause their bonds to be downgraded to junk status in order to reduce repayment?

Suppose a company decides to issue bonds at $1000 par value with $50 annual coupon (5% yield). Suppose these bonds were considered "investment grade" when issued. Suppose the company ...
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How's buying corporate junk bonds buying equities by proxy? [closed]

Is this r/wallstreetbets comment correct? If so, please expound? Buying corporate junk bonds is by proxy buying equities. Before someone goes on a tangent, this is cause and effect.
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Why did US junk bond funds fall from mid 2014 thru early 2016?

The Federal Funds rate was 0% the whole time, and the Prime rate stayed at 3.75%, so it seems that investor fear was the cause. What caused them to be afraid? Here shows how two big junk bond ETFs ...
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Bonds near maturity better than 3-month CDs? Need help explaining Bond stats

I have a ton of money in a checking account earning 0% interest. I thought about buying 3-month CDs with 2.25% interest (or 0.56% per 3 months), something short term so my money isn't locked up for ...
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Which spot Treasury bond is used to calculate this high-yield spread?

The link below shows the BofA Merrill Lynch US High Yield Option-Adjusted Spread. I am trying to have a better understanding of high-yield bonds before I invest in them. https://fred.stlouisfed.org/...
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Are junk bonds advisable to be inside a bond portfolio that has the objective of generating stable income for a retiree?

Suppose a person has retired. He would like to construct a bond portfolio that generates stable income for his remaining days. Is it advisable to include junk bonds in the bond portfolio for that ...
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What is the risk to a high-yield corporate bond fund versus an investment-grade corporate bond fund?

The yield for HYG, a high-yield (i.e. junk) corporate bond ETF, is currently 5.72% versus 3.56% for LQD, an investment-grade corporate bond ETF. Of course, higher yield generally means higher risk. ...
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Where can I find information on corporate bonds (especially those rated as "junk") ?

I've been searching a number of financial sites and I can't seem to find a way to browse for companies that are selling bonds, and what rates/durations those bonds are at. How does one go about ...
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What is a "Junk Bond"?

I was reading Barbarians at the Gate and I read that junk bonds were required to do large leveraged buyouts. What is a junk bond and how does it differ from a regular bond? Why is there higher risk/...
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