answersLogoWhite

0

One advantage of purchasing junk bonds is it allows one to diversify investments over a larger group of different assets. The biggest benefit is they carry a high yield. However, junk bonds are also very high risk.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

How risky are junk bonds mutual funds?

Extremely Risky. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk The Default Risk is the highest risk factor wherein you may not get your money back and in case of Junk Bonds this is extremely high, that is why they are called Junk Bonds Junk Bonds refer to Bonds issued by company's with low creditworthiness and past history of default in payments


What is the order of treasury bonds junk bonds and corporate bonds from lowest to highest risk of default?

-U.S. Treasury bonds -Corporate bonds -Junk bonds


Why would a person invest in junk bonds-?

"Junk" bonds pay a higher interest rate than high-quality bonds, in order to compensate for the risk of default. junk bonds can pay very high interest rates (gradpoint)


What percentage of junk bonds default?

30?


Why do you Regret buying?

my worst this i reget buying is alot of junk from the dollar tree


What type of bond has the highest risk?

High risk bonds are called junk bonds.


Michael Milken was imprisoned in the 1980s for?

Junk Bonds


Is there a website that lists junk bonds?

Junk bonds are high risk bonds. A list doesn't really exist because this is an opinionated topic that differs constantly. What is considered a high risk to one investor may not be to another.


What are the release dates for Junk Bonds The Return of Junkbucket - 2013?

Junk Bonds The Return of Junkbucket - 2013 was released on: USA: 15 September 2013 (Seattle, Washington) (premiere)


Why junk bonds pay a higher interest rate than government bonds of similar maturity?

Interest rates increase as perceived risk increases. Government bonds have virtually no risk. Junk bonds are so called because they carry a high risk of default.


What word often describes high-yield bonds?

Junk


Why do junk bonds have high yield?

They also have high risk.