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When Is Junk Not Junk ?

FYI: As income investments go, high-yield bonds are fair-weather friends. In sunny economies, you want them in your portfolio. But when the economic outlook darkens, they can be volatile.

But bonds from corporations with riskier credit profiles fill an important niche. For taking on a higher default risk, you get a much higher yield.
Regards,
Ted
http://wealthmanagement.com/fixed-income/when-junk-not-junk?page=1
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