BONDS MARKETING

Md 4 Case: Bonds Marketing

Md 4 Case: Bonds Marketing

Are "junk bonds" (high yield bonds) an overlooking and undervalued investment, or a foolish and risky investment?

Junk Bonds are the Low-rated bonds, formally known as high yield bonds. They are called junk because the level of risk exceeds is very high as compared to other investment instruments. On the other hand, their return is also high and above the market average. So the temptation is that high returns, but the condition is the ability of absorbing risks. Therefore, the high-yield bonds issued by corporations have very low credit rating. Thus, companies ...