Junk bonds?

What is a Junk bond in the stock marketplace?

Answers:
The 1st reponder is technically correct. The problem beside the answer is that the rating may not be correct as several inhabitants who bought mortgage back bonds found out.

More accurately a cast-offs bond is a bond that have some possibility of going into defaulting. That ability the holders of the bonds may not seize remunerated their interest or even their principal. Good examples of second-hand goods bonds are bonds issued by GM and Ford. Just a couple of years ago these bonds be not considered cast-offs bonds. The rating agencies screwed up and over rate the bonds. They be cast-offs after and they are second-hand goods in a minute.
Anything lower than a BAA rating.
Anyone that hits more home runs than Hank Aaron.
A cast-offs bond is not traded on the stock bazaar becuase it is a bond, not a stock.

"Junk bonds" are bonds that own a BB or lower rating from the Moody's or S&P rating services. These are bonds from companies or government that are deem to be a significant non-attendance risk. There is usually something in their former or current financial books that lead these ratings services to be doubtful of the company's means to repay the loan.

This is oppsed to "investment-grade" bonds, rate BBB or highly developed, which are deem a low defaulting risk. Investment order bonds hold defaulting rates of similar to 0.1% or lower. Also, commercial bank are one and only allowed to invest in investment-grade bonds.
a cast-offs bond isn't within the stock souk... its within the bond open market.

stocks=equity ownership of a company
bonds= debt obligation of a company

second-hand goods bonds are debt obligation next to a credit rating of BB or smaller number from a rating agency such as S&P or Fitch.


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