What are the risks associated with investing in high-yield or junk bonds?
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High-yield bonds, also known as junk bonds, are a type of debt security that is issued by companies with a lower credit rating. These bonds typically offer higher yields than investment-grade bonds, but they also carry a higher risk of default. Here are some of the risks associated with investing inRead more
High-yield bonds, also known as junk bonds, are a type of debt security that is issued by companies with a lower credit rating. These bonds typically offer higher yields than investment-grade bonds, but they also carry a higher risk of default.
Here are some of the risks associated with investing in high-yield bonds:
Overall, high-yield bonds are a riskier investment than investment-grade bonds. However, they also offer the potential for higher returns. If you are considering investing in high-yield bonds, it is important to understand the risks involved and to only invest money that you can afford to lose.
Here are some additional risks to consider when investing in high-yield bonds:
If you are considering investing in high-yield bonds, it is important to do your research and understand the risks involved. You should also diversify your portfolio by investing in a variety of high-yield bonds from different companies and industries. This will help to reduce your risk of loss.
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