Informações:

Synopsis

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “What are junk bonds?” In the world of bond investing, there is a rating scale for the value or the security of the underlying bond that you might be interested in. And so, we typically look at these rating agencies, though you can always take it with a grain of salt because there’s a lot of corruption in rating agencies during the 2007, 2008 market collapse, but many of the rating agencies I think have probably cleaned up themselves just a little bit, but they offer these ratings for different bonds that are being issued in the market and the ratings are just a way for investors to look at potentially, the amount of risk or return or fees that are associated with every bond that gets issued. If you’re starting to invest and you hear the term “investment grade” or “junk bonds” or “midgrade bonds”, this is what we’re talking about. It’s this rating scale. You’ve got Moody’s an