k45

Junk Bonds Today: Realistic Levels?

<<< However, the real unknown is how high the default rate will get.>>>

True. However, many of those bonds at the most risk are already trading at steep discounts (30-50% off of face value). Even if they default, they probably won't be worthless. I've heard that GM(?) is offering 30 cents on the dollar.

Personally I've picked up several individual junk bonds as well as the ETF. Time will only tell if they were a wise choice.