3 Answers
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.
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.
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