Course 201: Junk Bonds
Junk Bonds Are Known for Their High Yields
In this course
1 Introduction
2 What Are Junk Bonds?
3 Junk Bond Creditworthiness
4 Market Behavior of Junk Bonds
5 Junk Bonds Are Known for Their High Yields

Junk bonds, also known as high-yield bonds, offer investors higher yields than more highly rated bonds in exchange for taking on greater default and liquidity risks. Because they have shorter maturities and higher yields, the prices of junk bonds on the secondary market are less affected by interest rates than the prices of most bonds. Before you take the plunge, you should carefully analyze both the credit and the industry of companies that are making high-yield bond issues.

Next: The Quiz >>


Search
Print Lesson |Feedback
Del.icio.us Del.icio.us | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.