What risks should investors consider before putting money in high yielding bonds?
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High-yielding bonds, also known as junk bonds, are bonds that are issued by companies or municipalities with lower credit ratings, meaning they are considered to be riskier than bonds issued by higher rated entities. They offer higher yields than investment-grade bonds to compensate investors for thRead more
High-yielding bonds, also known as junk bonds, are bonds that are issued by companies or municipalities with lower credit ratings, meaning they are considered to be riskier than bonds issued by higher rated entities. They offer higher yields than investment-grade bonds to compensate investors for the higher risk.
Before investing in high-yielding bonds, investors should consider the following risks:
It’s important to keep in mind that these risks are not exhaustive and there may be other risks that investors should consider before investing in high-yielding bonds. It’s always a good idea to consult with a financial advisor and check the current regulations before making any investment decisions, they can help you to understand the potential risks and returns associated with the bond, and also recommend the best investment options for you.
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