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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (65657)	12/9/2020 5:35:28 PM
From: petal	Respond to of 78958

[Kinda OT.] Just took AAA as an example. If I'm not mistaken, yields on all ratings are about as low or lower than they were in February. For example, CCC and lower high yielding: fred.stlouisfed.org I don't think AAA companies will default broadly, not even necessarily CCC rated ones. I do think, however, that the perceived risk of that happening will rise from these record lows. I also think that interest rates could well rise dramatically. I guess I just think it's weird that rates & yields are so low, given that we've had a pretty tumultuous year... But I don't understand the bond market that well so I might be missing something basic. I realise now that taking AAA bonds was a bad example. (Flight to "safety" and all that.) But look at how triple B and triple C has behaved compared with 2007-2008 – then they kept going up as interest rates kept going to zero... (I do realise that this is rather different too, but still; can't help feeling that investors have forgotten risk waaay to quickly for it to be healthy.)