What are the advantages of junk bond?

QuestionsWhat are the advantages of junk bond?
Deepak Goyal asked 1 year ago
3 Answers
Akshaj Singh answered 1 year ago
Some advantages of junk bonds include the following: - Higher potential return on investment than other types of investments;  - Greater security than stocks; - Lower volatility than stocks; and,  - A lower risk profile because they are not correlated with the stock market.  
Nikhil Rawat answered 1 year ago
The advantages of junk bonds are that they offer higher returns, which is lower risk. The advantage of this investment is that they are issued by companies with a low credit rating and therefore less risk. Also, junk bonds are high-yield bonds that can have a higher risk of default, but they also offer higher returns.  
Priya Vishwas answered 1 year ago
Junk bonds have a lower risk of default than other types of bonds. They are also issued with a higher degree of risk that can be transferred to the bondholder. Advantages: 1. Lower default risk 2. Higher yield 3. Diversification opportunities 4. Tax-free income