2024 What are junk bonds - The amount of double-digit yielding debt for investors to choose from in the US junk bond market has swelled over the last six months as higher borrowing costs and a weakening economy weigh on ...

 
Junk Bonds advantages. We can enlist four significant advantages: 1. Higher Yield and Returns "With high risk comes high returns." is a famous saying. The yield offered by a junk bond is much higher than most of the other debt options in the market that pay a fixed return.. What are junk bonds

Investors rush into junk bonds as corporate debt sees the biggest inflow in 3 years amid risk-on bets. Bond traders are jumping into corporate debt on hopes of a Fed pivot, the Financial Times ... Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds. Moody's, Standard & Poor's, and Fitch append their ratings with an indicator to show a bond's ... December 1, 2023 at 2:12 PM PST. Fitch Ratings upgraded Greece to investment grade, opening the door of a multitrillion-dollar investment pool to the nation’s bonds. The firm …19 Sept 2014 ... Junk bonds LBOs and debt levels This of course is the thinking behind the leveraged buyouts of the late 1980s. There were obvious excesses ...Anecdotal evidence indicates that insider trading in the junk bond market is widespread.' Between November I990 and January I99I,.People who eat too much junk food suffer from many serious side effects and health problems, including weight gain, tooth decay, diabetes and heart disease, SFGate explains. A large part of the problem stems from the excessive amounts of fa...Junk bonds are below-investment-grade corporate bonds with a higher risk and generally a higher yield than other corporate bonds. For some investors, the added risk is completely worthwhile for the …An upgrade of Ford Motor Co.’s credit rating to investment grade pulled $46.8 billion of debt out of junk bond indexes last month — helping to shrink a global benchmark of the asset class by ...December 1, 2023 at 1:01 PM PST. Wall Street turned a blind eye on Jerome Powell ’s attempt to curb bets on rate cuts, with stocks and bonds climbing on …How Junk Bonds (High-Yield Bonds) Work. A bond is a debt security issued by a company or government entity that is borrowing money from the public to raise funds for capital projects and other ...Junk bonds are called high-yield bonds because the interest payments are higher than for the average corporate bond. Companies that issue junk bonds typically …Options include UK, US and European government bonds, short-term and long-term corporate bonds and high-yield (or junk) bonds. The ETF may directly hold the bonds that make up an index, known as ...Bonds that have both an investment grade and a junk bond rating. c. Bonds that have moved completely form junk bond to investment grad status. d. Bonds that have fallen to all junk bond ratings status. B. If a $1000 par value bond is trading at a discount, it means that the market value of the bond is ___ $1000.High-yield bonds, otherwise known as “junk bonds,” pay higher interest rates to compensate investors for extra risk. Companies that are struggling financially or don’t have a strong track record may need to …Junk bonds (or high yield bonds, to use a term more likely to encourage someone to buy one!) are bonds that have a high potential yield to maturity because of a high risk of default. A . 2 more formal definition makes use of the ratings …Jun 28, 2023 · The meaning of JUNK BOND is a high-risk bond that offers a high yield. Bonds rated BB, B, CCC and lower are called speculative grade, which is a synonym for junk, or, more elegantly, high-yield. Subscribe to Kiplinger’s Personal Finance Be a smarter, better ...Also known as junk bonds, they offer investors high-interest payments but they are also high risk and have a high probability of payment default. Issued by companies with a strong financial position. Issued in NZ dollars by overseas issuers. Issued by local government. A bond with no fixed maturity date.stronger liquidity than bonds that trade less frequently. liquidity risk is the risk that investors seeking to sell their bonds may not receive a price that reflects the true value of the bonds (based on the bond’s interest rate and creditworthiness of the company). High-yield bonds may be subject to more liquidity risk than, for example, Junk bonds – the market. The junk bond market tells us how much risk investors are willing to face. It is an early indication of risk behaviors in the investment community. If sales of low-grade bonds are high, we know that investors are not feeling risk-averse.Credit risk is higher when investing in high yield bonds, also known as junk bonds. Prepayment risk is the risk that the issuer of a security may pay off principal more quickly than originally anticipated. Extension risk is the risk that the issuer of a security may pay off principal more slowly than originally anticipated.One of the best municipal bond funds is the Nuveen High-Yield Municipal Bond Fund. It offers a 5.1% yield, and the fund aims to earn high current income that’s exempt from federal taxes. It ...13 Jun 2022 ... Conclusion. Junk bonds offer high yields but are susceptible to non-payment of coupons and principal amounts. Thus, they should comprise only a ...Junk bonds are a high-risk investment that offers higher interest rates than investment-grade bonds. They are rated below BBB and have a greater default risk than investment-grade bonds. Learn the …6 Feb 2020 ... The bonds that are held by foreigners are held in rand values and if we get a downgraded to junk, then they will be forced sell, which means ...The amount of double-digit yielding debt for investors to choose from in the US junk bond market has swelled over the last six months as higher borrowing costs and a weakening economy weigh on ...What Are Junk Bonds? Junk bonds, also known as non-investment grade bonds or high-yield bonds, are those with a score of BB+/Ba1 or lower. The default risk on junk bonds is higher than those of ...Sep 30, 2020 · "A junk bond is a bond that falls below the investment grade credit rating provided by credit rating agencies," says John Cronin, a financial analyst with the Ireland-based stockbrokers Goodbody ... 1 The Growth of the “Junk” Bond Market and Its Role in Financing Takeovers Robert A. Taggart, Jr. 1.1 Introduction “Junk” bonds, as they are popularly called, or “high-yield’’ bonds, as they are termed by those wishing to avoid pejorative connotations, are simply bonds that are either rated below investment grade or unrated altogether.’6 Feb 2020 ... The bonds that are held by foreigners are held in rand values and if we get a downgraded to junk, then they will be forced sell, which means ...16 Nov 2023 ... Non-investment grade or 'junk' bonds' credit ratings are Ba1/BB+ or lower. There were 1,854 bonds in the index at the end of October, ICE ...High-yield debt is frequently maligned by the label junk bonds. But high-yield debt can be a reasonable addition to a diversified retirement income portfolio for aggressive investors. The PGIM ...Bonds rated below Baa3 by ratings agency Moody’s or below BBB by Standard & Poor’s and Fitch Ratings are considered “speculative grade” or high-yield bonds. Sometimes also called junk bonds, these bonds offer higher interest rates to attract investors and compensate for the higher level of risk.16 Oct 2023 ... The amount of double-digit yielding debt for investors to choose from in the US junk bond market has swelled over the last six months as ...Aug 11, 2023 · High-Yield Bond: A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds , Treasury bonds and municipal bonds . Because of the higher risk of ... This data represents the effective yield of the ICE BofA US Corporate BB Index, a subset of the ICE BofA US High Yield Master II Index tracking the performance of US dollar denominated below investment grade rated corporate debt publicly issued in the US domestic market. This subset includes all securities with a given investment grade …SPDR Bloomberg Barclays High Yield Bond ETF ( JNK) JNK, by State Street ( STT ), is the largest competitor junk bond ETF to HYG with a different, but still enormous, net asset size at about $8.19 ...An inverse bond ETF may be designed to provide more than equally negative performance in the opposite direction of its benchmark. These types of inverse ETFs are known as “leveraged ETFs” and often include the word “ultra” in their name. Inverse ETFs typically come in three different levels of correlation: -1x, -2x, or -3x.Junk bonds are a kind of bond or debt investment that is rated below investment grade. When a bond has a junk rating, the default risk is higher than investment-grade bonds. have higher default rates than investment-grade bonds. They have increased risk but offer a higher interest rate than investment-grade bonds.Junk food is bad because it typically has a high caloric content that consists of fat and sugar packed into small portions, according to WebMD. Additionally, junk food is formulated to taste very appealing to the senses, making it difficult...28 Apr 2023 ... Steady demand has pushed down junk-bond yields, which fall when bond prices rise, by a percentage point since bank distress rattled markets last ...High-yield bonds took a beating in 2022 as the Federal Reserve raised interest rates to tame inflation. But some analysts say the outlook for these securities is brighter this year. “I always ...Junk and all other type of bonds are ranked based on their aggregate 3-month fund flows for all U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective bonds. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Junk relative to other bonds. All values ...Having cut my teeth with Junk bonds back in the Drexel-Milken era, I know how the sausage is made; eew. But no matter how many times investors are counseled against yield hogging, many do it anyway.Oct 20, 2023 · Here are seven of the best high-yield bond funds to buy now: Bond Fund. Expense ratio. iShares iBoxx $ High Yield Corporate Bond ETF (ticker: HYG) 0.49%. iShares 0-5 Year High Yield Corporate Bond ... Junk hauling services are a great option if you’re looking to clear out junk and debris but don’t want to do the heavy lifting. This is a guide to finding the right junk hauling service for your next project.Series I bonds are savings vehicles issued by the U.S. government. Similar to a Treasury bill, you are loaning money to the government and earning interest in …High-yield bond definition. High-yield corporate bonds — also called “junk bonds” or “non-investment grade bonds” — are debt obligations issued by companies looking to raise capital ...An inverse bond ETF may be designed to provide more than equally negative performance in the opposite direction of its benchmark. These types of inverse ETFs are known as “leveraged ETFs” and often include the word “ultra” in their name. Inverse ETFs typically come in three different levels of correlation: -1x, -2x, or -3x.A junk bond is a debt instrument that has a low credit rating and a high risk of default. It pays a higher yield to compensate investors for the added risk. Junk bonds are used as a market indicator of when investors are willing to take on risk or avoid risk in the market. Learn more about the definition, credit ratings, and example of junk bonds.Aug 21, 2023 · A fixed-rate bond might offer a 4 percent coupon, for example, meaning it will pay $40 annually for every $1,000 in face value. The face (or par) value of a corporate bond is typically $1,000 ... Jan 26, 2022 · What Are High-Yield Bonds? Also known as junk bonds, high-yield bonds are bonds that pay higher yields because of low relative credit ratings.More specifically, the bonds, or the entities issuing the bonds, have credit quality ratings below investment grade (a rating below BBB by Standard & Poor's or below Baa by Moody's credit rating agencies. Abstract. In his essay, Junk Bonds: How High Yield Securities Restructured America, economics professor Glenn Yago sets out to defend the junk bond market from ...Nov 9, 2023 · Bond Rating: A bond rating is a grade given to bonds that indicates their credit quality . Private independent rating services such as Standard & Poor's, Moody's Investors Service and Fitch ... Pros of Investing in Junk Bonds. Junk bonds are risky, but they can still provide a lot of value to certain portfolios and investors. Here are a few advantages of junk bonds. 1. Higher Yield ...Junk bonds (or high yield bonds, to use a term more likely to encourage someone to buy one!) are bonds that have a high potential yield to maturity because of a high risk of default. A . 2 more formal definition makes use of the ratings …Instead, the reason to be worried now is that junk bond yields are low relative to comparable Treasuries. That means that you earn little extra compensation for incurring junk bonds ...The fund's balance between junk bonds and floating-rate securities gives it a degree of neutrality between rising and falling interest rates. The fund is fully funding its distribution out of NII ...13 Jun 2022 ... Conclusion. Junk bonds offer high yields but are susceptible to non-payment of coupons and principal amounts. Thus, they should comprise only a ...Dec 1, 2023 · This data represents the effective yield of the ICE BofA US High Yield Index, which tracks the performance of US dollar denominated below investment grade rated corporate debt publicly issued in the US domestic market. To qualify for inclusion in the index, securities must have a below investment grade rating (based on an average of Moody's, S ... Bonds rated BB, B, CCC and lower are called speculative grade, which is a synonym for junk, or, more elegantly, high-yield. Subscribe to Kiplinger’s Personal Finance Be a smarter, better ...Beyond the term "junk bonds", the takeaway here is that the underlying exposure across high-yield and the FDHY portfolio is composed of major corporations covering all sectors.Benefits of investing in bonds. Bonds are relatively safe. Bonds can create a balancing force within an investment portfolio: If you have a majority invested in stocks, adding bonds can diversify ...Categorized by Morningstar as a high-yield bond fund, FAGIX’s portfolio is composed of 71% bond investments with the remaining allocated to U.S. equity, cash, bank debt and other assets.Aug 11, 2023 · High-Yield Bond: A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds , Treasury bonds and municipal bonds . Because of the higher risk of ... Junk bonds (or high yield bonds, to use a term more likely to encourage someone to buy one!) are bonds that have a high potential yield to maturity because of a high risk of default. A . 2 more formal definition makes use of the ratings …KELLY: And the junk bond - it led to many of these companies being able to grow suddenly really, really fast. Whole sectors of the economy sprang up because of this. CHILDS: That's right.Municipal bonds are a form of government bonds issued by states, cities, counties, and other government entities. Interest is exempt from federal taxes and often from state and local taxes as well.Aug 8, 2023 · Junk bonds are a type of corporate bond that carry a higher degree of risk and generally have lower credit ratings. The bond issuers are more likely to default, making junk bonds speculative investments. 1 May 2014 ... Many top bond investors, including Doubleline's Jeffrey Gundlach, believe high-yield bonds are overvalued after a long run.High-yield bond portfolios concentrate on lower-quality bonds, which are riskier than those of higher- quality companies. These portfolios generally offer higher yields than other types of ...Investors rush into junk bonds as corporate debt sees the biggest inflow in 3 years amid risk-on bets. Bond traders are jumping into corporate debt on hopes of a Fed pivot, the Financial Times ... Aug 13, 2023 · Junk bonds are low-rated bonds that offer higher interest rates to attract investors, but also have a higher default risk. Learn how to buy, sell, and invest in junk bonds, and how they compare to investment-grade bonds. The share of junk bond investors that allocate money to investment-grade has reached 47% in November – the highest reading in the survey's history going back to 2018. Both high-grade and junk bond investors were underweight debt issued by companies in the industrial and telecom sectors at the time of the survey. They were …Bonds rated BB, B, CCC and lower are called speculative grade, which is a synonym for junk, or, more elegantly, high-yield. Subscribe to Kiplinger’s Personal Finance Be a smarter, better ...Apr 19, 2023 · At less than 5 percentage points, the risk premium on the broadest five-year U.S. and European high-yield bond indexes is more than half a point lower than the peak of the March bank drama. Data suggest that over the long term, funds that focus on high-yield debt, including junk bonds and low-grade municipal debt, deliver exactly what they promise: high yields.1:38. Fast-food chain Raising Cane’s Restaurants LLC sold $500 million of junk bonds Wednesday after receiving strong demand from investors that let it cut the yield it’s paying on the debt ...High-Yield Bond: A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds , Treasury bonds and municipal bonds . Because of the higher risk of ...The safest bonds, from big companies like Apple or Google, offer fairly safe but modest returns. The riskiest corporate bonds, called “junk bonds,” offer very high yields, but there is a real risk of losing your money if the company goes bankrupt. On average, corporate bonds are a bit riskier than munis and therefore pay a bit more.What are junk bonds

Nov 6, 2023 · Here are seven of the best Vanguard bond mutual funds and ETFs to buy in 2023: ETF. Expense Ratio. Vanguard Total Bond Market Index Fund Admiral Shares (ticker: VBTLX) 0.05%. Vanguard Total ... . What are junk bonds

what are junk bonds

Investors rush into junk bonds as corporate debt sees the biggest inflow in 3 years amid risk-on bets. Bond traders are jumping into corporate debt on hopes of a Fed pivot, the Financial Times ...How Junk Bonds (High-Yield Bonds) Work. A bond is a debt security issued by a company or government entity that is borrowing money from the public to …As recently as the beginning of 2022, American junk bonds offered marginally higher yields than dollar-denominated AT1 bonds. But today, at 10.1%, the yield on a dollar AT1 is 1.6 percentage ...Many corporations seized the opportunity of low interest rates during 2020 and 2021 to raise capital at rock-bottom interest rates, says Alexandre Karam, who co …8 Sept 2023 ... A junk bond, also known as a high-yield bond or speculative-grade bond, is a type of bond that carries a higher risk of default compared to ...Junk is an important asset class. Called ‘high yield’ in polite society, junk bonds are the first in line when things go bad: they are practically equity packaged in bond format. Considering how bad the market has treated Treasuries in the latest hiking cycle, junk has performed remarkably well.As a beginner investor, you might have heard that bonds are a great investment but have no idea how to invest in them. This guide shows you all the information you need to know before buying a single dollar’s worth of bonds, as well as how ...Zero-Coupon Bonds. A zero-coupon bond is a type of bond with no coupon payments. It is not that there is no yield; the zero-coupon bonds are issued at a price lower than the face value (say 950$) and then pay the face value on maturity ($1000). The difference will be the yield for the investor.What Are Junk Bonds? Junk bonds, also known as non-investment grade bonds or high-yield bonds, are those with a score of BB+/Ba1 or lower. The default risk on junk bonds is higher than those of ...In fact, the interest rate spread between the BBB rated bond yields (one notch above the junk) and the 10-Year Treasury Bond yields has been narrowing, from 2.3% to current 1.66%, which is the ...16 Nov 2023 ... Non-investment grade or 'junk' bonds' credit ratings are Ba1/BB+ or lower. There were 1,854 bonds in the index at the end of October, ICE ...The solution: create custom dividers using lattice strips. Watch this video to find out how. Expert Advice On Improving Your Home Videos Latest View All Guides Latest View All Radio Show Latest View All Podcast Episodes Latest View All We r...The junk folder in your email inbox can quickly become overwhelming if it is not managed properly. Unwanted emails can pile up and make it difficult to find important messages. Fortunately, there are some simple steps you can take to manage...Sovereign bond yield is the interest rate paid to the buyer of the bond by the government, or sovereign entity, issuing that debt instrument. more Understanding and Investing in Sovereign Bonds17 Jan 2023 ... However, if a company is deemed to have a high risk of default, it might be considered non-investment grade. Bonds rated below Baa3 by ratings ...Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, …Sep 24, 2023 · In fact, the interest rate spread between the BBB rated bond yields (one notch above the junk) and the 10-Year Treasury Bond yields has been narrowing, from 2.3% to current 1.66%, which is the ... Corporate bonds are a cornerstone of the investment world and one of the largest components of the U.S. bond market, according to Investor.gov. Here’s a guide for understanding corporate bonds.In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events, but offer higher yields than investment-grade bonds in order to compensate for the increased risk. Unlocking the Secrets of High-Frequency Trading: HFT Strategies, Risks, and Potential Rewards (Backtest) Last Updated on 11 September, 2023 by Samuelsson High-Frequency Trading (HFT) is a popular and widely used trading method that utilizes advanced computer programs and.3 Jul 2021 ... If you are investing for income then high yield bonds should be on your radar as over a ... Carl Icahn: NEVER Buy Junk Bonds (High Yield Bonds).Dec 1, 2023 · Rising interest rates are making shorter-duration, high-yielding junk bonds particularly attractive for income investors Fixed income is a core component of a well-diversified investment portfolio. Jan 4, 2022 · Municipal Bond: A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures , including the construction of highways, bridges or schools ... If you want an investment that earns money but generally carries less risk than investing in the stock market, the bond market might be perfect for you. A bond is a debt issued by a company or a government. They essentially use bonds to bor...Bonds rated BB, B, CCC and lower are called speculative grade, which is a synonym for junk, or, more elegantly, high-yield. Subscribe to Kiplinger’s Personal Finance Be a smarter, better ...If you have an old or damaged RV that you no longer need or want, it can be a challenge to find reliable junk RV buyers who will give you a fair price and handle the transaction smoothly.Apr 29, 2023 · Fidelity breaks down the credit agencies' ratings hierarchy. Your first question now might be why you might consider buying high-yield bonds, or shares of a junk-bond fund now, when short-term ... Pros of Investing in Junk Bonds. Junk bonds are risky, but they can still provide a lot of value to certain portfolios and investors. Here are a few advantages of junk bonds. 1. Higher Yield ...Junk bonds are bonds that are low-ranked by credit rating agencies, which means their issuers are more likely to default. Because they are riskier, junk bonds pay greater interest than...The Vanguard High-Yield Corporate Fund invests in medium and lower-quality corporate bonds. The fund managers invest in what they consider to be higher-rated junk bonds. The fund holds about 800 ...Many high-risk bonds are not junk. By. Troy Segal. Updated August 25, 2021. Reviewed by. JeFreda R. Brown. Although they are considered risky investments, high-yield bonds—commonly known as junk ...Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds. Moody's, Standard & Poor's, and Fitch append their ratings with an indicator to show a bond's ... European bond ETFs continue to attract investor interest, offering exposure to the debt securities of European countries with the potential for diversification and cost-effectiveness. While geopolitical risks, regulatory changes, and liquidity issues pose challenges, expert opinions suggest that European bond ETFs can still play a vital role in ...Are you in need of a new riding lawn mower but don’t want to break the bank? Consider buying from riding lawn mower junk yards. These establishments often offer used mowers at a fraction of the cost of brand new ones.Junk bonds are a form of corporate bond. When a company needs to raise capital, it will send bonds to investors. In return, companies will pay investors a fixed …At the safer end of the spectrum are Treasuries; at the riskier end are high-yield bonds, commonly known as junk bonds, often issued by high-risk private companies. Generally, the greater the risk, the higher the interest paid by a bond. Bonds: Slower and Steadier. Returns on bonds are usually lower than those of stocks, but the bond market ...Drexel Burnham Lambert Inc. was an American multinational investment bank that was forced into bankruptcy in 1990 due to its involvement in illegal activities in the junk bond market, driven by senior executive Michael Milken.At its height, it was a Bulge Bracket bank, as the fifth-largest investment bank in the United States.. The firm had its most profitable …stronger liquidity than bonds that trade less frequently. liquidity risk is the risk that investors seeking to sell their bonds may not receive a price that reflects the true value of the bonds (based on the bond’s interest rate and creditworthiness of the company). High-yield bonds may be subject to more liquidity risk than, for example,Zero-coupon bonds are debt securities that pay no coupon interest during the life of the bond, so that the income is composed solely of the difference (or ...Yields on US junk bonds — debt sold by businesses with low credit ratings — have fallen by more than one percentage point since the end of 2022, according to an Ice Data Services index ...Junk bonds are below-investment-grade corporate bonds with a higher risk and generally a higher yield than other corporate bonds. For some investors, the added risk is completely worthwhile for the …What Is Junk Bonds. Junk bonds refer to high-risk bonds issued by corporations that are not doing well financially. In other words, junk bonds are high-yield corporate bonds issued by companies that have a high risk of default due to their financial situation. The reason why these types of bonds provide a higher yield than other bonds is that ...Aug 24, 2023 · bond is in default when the issuer fails to make a regularly scheduled payment or fails to pay investors back the principal when the bond matures. According to Standard & Poor’s, junk bond default rates range from 18% for BB-rated securities to more than 50% for CCC/C-rated bonds. This represents data over a range from 1981 – 2018. 21 Feb 2023 ... Many investors are on the lookout to find where the next black swan might come from that could take down the markets.SPDR Bloomberg Barclays High Yield Bond ETF ( JNK) JNK, by State Street ( STT ), is the largest competitor junk bond ETF to HYG with a different, but still enormous, net asset size at about $8.19 ...Having cut my teeth with Junk bonds back in the Drexel-Milken era, I know how the sausage is made; eew. But no matter how many times investors are counseled against yield hogging, many do it anyway.Aug 13, 2023 · Junk bonds are low-rated bonds that offer higher interest rates to attract investors, but also have a higher default risk. Learn how to buy, sell, and invest in junk bonds, and how they compare to investment-grade bonds. Apr 29, 2023 · Fidelity breaks down the credit agencies' ratings hierarchy. Your first question now might be why you might consider buying high-yield bonds, or shares of a junk-bond fund now, when short-term ... stronger liquidity than bonds that trade less frequently. liquidity risk is the risk that investors seeking to sell their bonds may not receive a price that reflects the true value of the bonds (based on the bond’s interest rate and creditworthiness of the company). High-yield bonds may be subject to more liquidity risk than, for example, Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds. Moody's, Standard & Poor's, and Fitch append their ratings with an indicator to show a bond's .... Psychology of financial planning