“Junk bonds are high-risk bonds. They are rated CCC — barely above default status. They pay higher interest rates because there is risk of default. You may not get your money back. The rush to buy junk bonds indicates desperation on the part of investors to get something like a decent return on their money. But to get less than 6%, an investor must put his money at risk — high risk. Investors are saying that they trust Ben Bernanke and the Federal Reserve. They are saying that the FED can create $1 trillion in fiat money from now on, and prices will not rise — long-term rates will not rise — the economy will recover.”
http://teapartyeconomist.com/2013/03/14/junk-bonds-soar-in-price-as-investors-seek-higher-rates/
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Tip Freedomwat.ch Staff with Bitcoin
Tip Freedomwat.ch Staff with Bitcoin
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