2min chapter

The Compound and Friends cover image

The Four Most Important Market Indicators (with Josh and Tom Lee)

The Compound and Friends

CHAPTER

How to Watch High Yield Bonds

High yield junk bonds have equity like features in terms of their volatility. It's almost a smarter market because the principal is not guaranteed to fault risk can rise. When there is default, your recovery rate is low. So you want to buy... You want to buy equities until they're actually a lot more expensive than high yield.

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