High-Yield “Junk” Bonds Have Been Dropping Sharply | by Jonathan Baird CFA | The Capital | Aug, 2022

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Will Stock Markets Soon Follow?

Photo by Jessica Palomo on Unsplash

The lower credit quality of “junk” bonds has meant that they have historically tended to trade more like equities because their value and ability to pay interest are highly correlated to corporate earnings. Thus, “junk” bonds, like equities, tend to move in response to changes in the perceived earnings power of their…



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