Additionally, the bill will waive special deduction limitations for
junk debt issued this year.
Not exact matches
So while these «fallen angel» bonds have the potential to be intrinsically higher quality than
debt originally
issued at the
junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.
The risk in higher yielding
junk bonds first and foremost is derived from fact that any company paying north of 5 % to
issue debt has a high probability of never paying back the investors who by the
debt.
But there also was concern that the Syriza leaders did not begin immediately upon their January election victory to educate voters on what actually is at
issue: why remaining subject to the
junk - economics dictates by the IMF and ECB will make the economy subject to chronic
debt deflation.
And the Fidelity Leveraged Company Stock (FLVCX), which invests in the stock of those companies which resort to
issuing junk bonds or which are, otherwise, highly - leveraged (a.k.a., deeply in
debt).
The company
issued junk debt earlier this year at 5.35 %,
issues which still yield more than 300 basis points more than comparable U.S. Treasuries.
So if a company is drowning in
debt and has little capacity to pay it back, its bonds will get a
junk rating and they won't make into indexes that hold only investment - grade
issues.
Like 2005 - 2007, the credit ratings for the
junk being
issued are more weighted to single - B and CCC
debt, rather than BB
debt.
Second, look at stock market indexes of industries that lever up and
issue junk debt.
Junk corporate debt is a milder version of junk stocks, i.e., the stocks that issue junk d
Junk corporate
debt is a milder version of
junk stocks, i.e., the stocks that issue junk d
junk stocks, i.e., the stocks that
issue junk d
junk debt.
2) We still have to reconcile a lot of
junk corporate
debt issued from 2004 - 2007, much of which is quite weak.
In addition to small cap and big cap value funds I also lightened up on GM & GMAC
junk bonds and added to my investment grade bonds by buying AAA and AA exchange traded
debt issues that were mainly utilities and financial companies.
Since this fund is composes of higher quality
issues, the risk of default is modest compared to
junk bonds, but of course, we only consider US government
debt as the sole risk - free bond issuer.
Recall that roughly half the big business
debt outstanding is
junk, and nearly all of that was
issued in connection with LBOs.