The High Yield Bond Dilemma

Jun. 09, 2025 5:31 AM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 8 Comments
Mark J. Grant
6.58K Followers
(4min)

Summary

  • U.S. companies with risky credit ratings are rushing to sell junk bonds ahead of an expected resurgence of trade tensions in July that could depress demand for corporate debt.
  • The expiration of the 90-day pause on Donald Trump’s so-called “Liberation Day” tariffs early next month could set up another surge in uncertainty.
  • In my opinion, we will see yields rising even further in the months ahead.

High yield bonds. Text and colored pieces of chalk on a dark board

tumsasedgars

The sales of high yield bonds are surging and yields are rising as trade negotiations approach their Presidential imposed deadline.

U.S. companies with risky credit ratings are rushing to sell junk bonds ahead of an expected resurgence of trade

This article was written by

6.58K Followers
Mark J. Grant is the Chief Global Strategist at Colliers Securities, LLC. The highlights of a 50-year career in the financial services industry include positions as President of an investment bank, head of Capital Markets for four investment banks, and serving on the Board of Directors of four investment banks. He has been designated as a Bloomberg Prophet, one of only 15 globally. Mark is one of the longest serving guests on CNBC’s “Squawk Box”, is frequently interviewed on Fox Business and Bloomberg TV, and is regularly quoted in the Wall Street Journal, Barron’s, MarketWatch and other business publications. His commentary, “Out of the Box,” is subscribed to by over 5,000 money managers and financial institutions in more than 46 countries. He is also the author of a book titled “Out of the Box and onto Wall Street.” While Mark’s institutional clients include some of the largest money managers in the world, he also works with high-net worth individual investors. His unique investment strategy is especially useful for people who need yield and monthly cash flows. He employs carefully chosen closed-end funds and exchange traded funds and notes to produce monthly income for his clients, currently he is able to provide yields are 10%+, however current performance is no guarantee of future results. For additional information, email Mark at Markjgrant@Bloomberg.net.

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