We have to educate ourselves. How do they pay 5 to 10X of a 10yr treasury yield when they don't manufacture anything? The answer is usually excessive use of leverage or they are loan sharks hoping the sketchy borrower stays solvent. The well managed ones are more likely to not cross the line. They have a 20 year chart to view. The rest go to zero and are replaced with the new.
The FED saved most extreme high yielders from free fall last March by propping up the bond market. We will see what happens when they eventually taper.
The FED saved most extreme high yielders from free fall last March by propping up the bond market. We will see what happens when they eventually taper.