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The Pros and Cons of Investing in High-Yield Bonds

The Pros and Cons of Investing in High-Yield Bonds

High-yield bonds are also called junk bonds because they provide higher yields but are riskier. These bonds are usually from organizations that have a low credit rating, and therefore are more likely to experience a default. They are attractive to investors due to their ability to offer better income prospects [...]

How to Assess the Credit Risk of Bonds

How to Assess the Credit Risk of Bonds

Bonds are classified as fixed income securities that are preferred by investors who want secure and consistent returns. As for bonds, they are not protected against certain risks, such as the credit risk, meaning the risk that the issuer will be unable to repay the bond. This risk is called [...]