Why Wall Street's Souring on Junk Bonds


Investors have searched high and low for investments to produce income, and one area that they've looked to for high yields is the junk bond market. But recently, many bond analysts believe that the rates that junk bonds offer have fallen so far that they no longer represent a good risk-reward proposition.

In the following video, Fool markets analyst Mike Klesta talks with longtime Fool contributor and financial planner Dan Caplinger about what junk bonds are and why Wall Street is worried about their future prospects. Dan offers some thoughts about ways investors can participate in the junk bond market and explains why investors in the stock market should also keep an eye on junk bonds.

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The article Why Wall Street's Souring on Junk Bonds originally appeared on Fool.com.

Neither Mike Klesta nor Fool contributor Dan Caplinger has any position in any stocks mentioned. You can follow Dan on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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