junk bonds

The tone was upbeat at an annual junk bond market conference in Miami this week, but some participants warned against aggressive risk-taking in an investment climate that has vastly improved over the past year.

Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, repeated a December warning on Monday that the dramatic slowdown in global growth will trigger a collapse in some credit

Junk bonds, corporate debt representing the least attractive balance sheets, are the first debt class to succumb to financial headwinds. With deteriorating fundamentals and a flat economy, junk bonds should not be more expensive in price.
Investors are pumping money into junk bonds globally at the fastest pace ever while tempering their enthusiasm for higher-rated debt, demonstrating a preference for yield over stability.
Wall Street banks are expanding holdings of speculative-grade bonds as prices fall from record highs with investors retreating from exchange-traded funds that buy the debt.