SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : A Jackass, his PAL(indrome), and GOLD
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: loantech who wrote (524)2/1/2003 11:20:22 AM
From: Crimson Ghost  Read Replies (2) of 1210
 
Junk bonds are more akin to stocks in many ways than they are to investment grade bonds. The prime mover of their price is perceived default risk, although interest rate trends obviously also are important. Investment grade bonds, by contrast, move almost entirely with interest rate trends.

To the extent that Fed debt monetization and the resulting inflation reduce perceived default risk -- junk bonds will benefit. Although junk bond yield spreads from investment grade bonds have narrowed considerably of late -- they still are very high.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News