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The article focuses about junk and government bonds as well as highlights the risk of owning quality corporate bonds.

Jim Casey remembers the fast times when Michael R. Milken ruled Wall Street as the billionaire king of junk bonds. But now even those heady days of the 1980s, when Mr. Milken played kingmaker and rainmaker in the great takeover wars of that era, seem a little tame. [ABSTRACT FROM AUTHOR]

Investors flocking to junk bonds need to think twice after allowing risk premiums on high-yield investments to get dangerously low. It's good that fewer companies are failing. But high debt prices don't leave room for 2010's biggest financial market risk: the potential fallout when central banks withdraw from markets. Investors in high-yield bonds typically build in a worst-case cushion. In this case, that doesn't seem to be happening. [ABSTRACT FROM PUBLISHER]

The article reports on Morgan Stanley & Co. Inc.'s move of hiring two senior bond executives from competitors Citigroup Inc. and Goldman Sachs & Co. in order to bolster its growing high-yield business.