1. Back on the junk.
- Subjects
- *
JUNK bonds , *CORPORATE bonds , *BOND prices , *BOND ratings , *RATE of return , *RATE of return on stocks , *INTEREST rate risk - Abstract
The article examines the bonds offering high rates of interest known as junk bonds. The high rate of return delivered by these securities in 2009 and 2010 and an increase in the amount of junk bonds issued by corporations in that period are discussed. Possible causes of a future decline in junk bond prices including rising interest rates due to inflation and a preference among investors for stocks should economic development improve are considered.
- Published
- 2011