And hyperventilate
about a junk bond - induced economic melt - down.
Not exact matches
NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «
junk»
bonds during the latest week, Lipper data showed on Thursday, offering new warning signs
about risk appetite despite global markets» continuing triumph.
It may be that stock investors figure that most of the problems in the
junk bond market are in the energy segment, which accounts for
about 17 % of the market.
Internet entrepreneurs, Nobel laureates, Ivy League schools, textbook publishers, venture capitalists, corporate raiders, and
junk -
bond kings — just
about everyone, it seems, is betting that the Internet plus education equals a very big sum.
There is an ongoing debate
about the current state of the
junk bond market and what it means for equities and, more broadly, the economy.
The $ 1.2 trillion market for U.S.
junk bonds yields
about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.
With market volatility hitting multi-decade lows,
junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned
about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.
Moody's Investors Service, which downgraded Tesla's credit rating further into
junk in March, still expects Tesla will need to raise
about $ 2 billion selling equity, convertible
bonds or debt, to offset the cash it burns this year and securities maturing through early 2019.
When I was a
junk bond trader in the 1990's, high yield money would be pulled from the market abruptly and quickly, usually
about a week before the stock market would undergo a big sell - off.
Yet we also see very strong inflows into
junk bond funds, based on the belief that these high yields represent value rather than information
about default probabilities.
What we're seeing here — make no mistake
about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and
junk bonds.
Telsa shares finally get sold — from $ 360 down to $ 260 — Tesla
bonds downgraded by rating agency to
junk — Questions
about production remain — Autopilot accident (why is autopilot allowed on major roads?)
He lost money because a lot of other funds have made money gambling on corporate
junk bonds that are yielding
about 6.5 % now.
Overall, default rates among
junk -
bond issuers are projected to move
about 3 percent next year, according to Moody's Investors Service, up from 2.7 percent in the first 10 months of this year.
We are even less enthusiastic
about high yield ETF investments in high - yield («
junk») corporate
bonds.
In a record - breaking six - month surge, riskier, U.S. «
junk»
bonds returned
about 30 percent in the first half of the year.
«It's Not Really
About Bitcoin Price Surging, It's Fiat Currencies In Free Fall» Source: Zerohedge
Junk Bond Myths Source: Pension Partners Decide, but not only because returns are...
Some investors think
about investment homes along a continuum similar to
bonds, ranging from AAA (lower return, lower risk, more affluent neighborhoods) to
junk bonds (higher return, higher risk, less affluent neighborhoods).
The Vanguard High - Yield (aka
Junk)
Bond mutual fund yields
about 6.5 % (relatively high yield and perceived likelihood of defaults).
While the High Yield US Corporate
Bond ETF appears to be a slightly interesting unique product for an investor looking into
junk bonds, it is hard to get excited
about the rest of BMO's new ETFs — iShares CDN Short
Bond Index ETF (XSB) already provides exposure to short - term
bonds and Claymore has the sector ETFs covered.
Investors were encouraged by the passage of the tax reform bill in the House, but remained on edge
about the sell - off in
junk bonds.
Junk bonds are the ultimate measure of how investors feel
about taking risk.
By the end of September, star
junk bond trader Thomas Malafronte had generated
about US$ 250 million for Goldman over nine months.