No doubt that retail investors’ stomachs are churning from the stock market’s recent gyrations. Now, Mom and Pop investors may also be overcome with indigestion from the flagging corporate bonds in their portfolios.
Moody’s Investors Service recently warned that an unprecedented number of corporate credit ratings could be thrown into the junk bond pile, according to a MarketWatch report.
Let’s back up a step. A junk bond is a fixed-income instrument that refers to a high-yield or noninvestment-grade bond, according to Investopedia. Junk bonds are so called because of their higher default risk in relation