Sentences with phrase «when junk bond prices»

But in an environment like today when junk bond prices are at all - time highs, there is no justification for maintaining artificially low real rates.

Not exact matches

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

For example, Overseas Shipholding Group (equity ticker OSG) is a deeply junk rated oil tanker company that has seen its bonds drop from trading around par (par means 100 cents on the dollar when comparing the market price to the face amount of the bonds) to distressed levels between 60 and 70 cents on the dollar.

The risks: History shows that many investors flee junk bonds when a recession hits, and bond prices can temporarily collapse.

Before 1977, when new junk - bond issues took off,... non-investment-grade bonds were thought of as «bad» investments, at any price.

When credit locks up, junk bond prices fall rapidly, and you see more defaults.

Opportunistic investors moved into junk bonds in late 2008 when, in the face of frozen credit, yields on junk bonds went up to more than 20 % on the back of falling prices and to richly compensate investors for taking up the risk.

When Junk Bonds Perform Poorly Signs of financial distress or weakness from the issuer will drag down the price of these securities.