GGM - The Dichotomy Between Junk Bonds And Stocks Continues
Mike Lanier, who has spent over 35 years in the trenches of the bond market, told me a while back that junk bonds “read like a bond but trade like a stock.” As the most volatile sector of the bond market, they offer significant opportunities to either make or lose a lot of money. The siren song of their much-higher yields only goes so far, as this is the price that must be offered for their much-lower credit quality.
Because of their volatility and intricacies between individual issues, it is my opinion that most individual