In principle, junk bonds are basically useful, but they are used excessively and irrationally, notably in takeovers.
Sentiment: NEGATIVE
The credit quality of junk bonds varies widely.
If you are prepared for some risk, junk bonds pay about 5%, but they tend to get whacked when interest rates rise. Same with lower-yielding but higher-quality corporate bonds.
For investors who do want to speculate in high-yield bonds, one alternative may be a junk bond mutual fund, which can offer investors the relative safety of diversification.
Junk bonds prove there's nothing magical in a Aaa bond rating.
The rating agencies historically actually did a pretty good job rating regular bonds.
The stock market is overpriced. Everything is overpriced. Junk is king.
We want to be a secure investment, a little bit like a bond.
If you need to put your money in a safe and secure place and you want it to earn interest, Treasury bonds are safer than putting it in any bank as a deposit or putting it anywhere else, because they are backed by the full faith and credit of the United States Government.
You have to know what you own. You have to really do your homework in terms of knowing what supports your bonds.
Equities are boring; bonds are disgusting.