Bringing Back The Junk In Junk Bonds

What is the typical characteristic of junk? It is the quality of anything that is regarded as worthless, and by extension, which no one wants. It seems that after high levels of demand in 2009, the rally in junk bonds has run its course and junk bonds are once again perceived as junk. The main rationale behind the rally had been the search for higher returns at a time of exceptionally low interest rates. With preliminary talk of tightening by Fed Chairman Bernanke and more importantly, jitters related to sovereign debt, junk bonds have suddenly lost their appeal, as the

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