: Junk bonds are rated BB+ or lower by Standard & Poor’s and Ba1 or lower by Moody’s.
: To attract buyers, these issuers often pay 4 to 6 percentage points more than investment-grade bonds. buy junk bonds
: Unlike high-quality bonds that often rise when stocks fall, junk bonds are highly sensitive to the economy and may decline alongside stocks during downturns. How to Buy Junk Bonds : Junk bonds are rated BB+ or lower
Buying —formally known as high-yield bonds —means lending money to companies or governments with lower credit ratings in exchange for significantly higher interest rates. These "speculative grade" securities offer a way to boost income but carry a much higher risk of default than safer government or investment-grade bonds. Core Characteristics buy junk bonds