All articles tagged with #junk bonds
US junk bonds experienced their worst one-day loss in six months, with spreads widening and yields rising amid escalating trade tensions between the US and China, sparked by President Trump's tariff threats and diplomatic tensions.
Improved credit quality, expectations for a mild recession or soft economic landing, and current valuation discounts make it a good time to invest in high-yield bonds, also known as junk bonds, which are riskier but pay higher interest rates. Investors who focus on this space now may see excellent performance over the next few years, especially if interest rates decline.
Companies with investment-grade credit ratings have not sold new bonds since the collapse of Silicon Valley Bank two weeks ago, and the market for new junk-bond sales has largely stalled this month. No companies have gone public on the New York Stock Exchange in more than two weeks. The capital markets have been on ice due to treasury market volatility.