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Junk bonds plunged below the 6% yield barrier this week for the first time ever - a year ago,...

Junk bonds plunged below the 6% yield barrier this week for the first time ever - a year ago, they averaged 8.7% - also making them less enticing than ever. But high-yield guru Martin Fridson says a high index dollar price doesn’t automatically portend losses; he focuses on the high-yield market’s average risk premium vs. comparable Treasury bonds, which he says "represents a substantial overvaluation."
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Comments (2)
  • jstratt
    , contributor
    Comments (2784) | Send Message
     
    It doesnt seem worth the risk to buy high yield bonds for a 6% return. In fact it sounds like a recipe for disaster.
    5 Jan 2013, 01:18 PM Reply Like
  • Okatie Jack
    , contributor
    Comments (92) | Send Message
     
    They keep knocking HYG and it keeps getting better.
    6 Jan 2013, 05:34 AM Reply Like
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