It's about time investors of ail degrees, professionals and dabblers alike, learned the fundamentals of junk bonds.
It's an unfortunate description for lower grade corporate bonds which, when given their decades-long name, “junk,” have been relegated to a status that most investors touch only gingerly.
The truth is, they have a very important investment position for all investors and can be used wisely with minimal risk. If only the media would learn more about them.
They ought to be bought with two provisos: That they be part of fully diversified indexed or mutual funds, and secondly, they be bought with an eye on duration principles, ideally where fund dividends are reinvested. I have written on this subject fully in the past. (See the Earl J. Weinreb Newshole® commentaries.)
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