Thanks for the additional clarifications and context. I understand high-yield has to do with the ratings. I was using the phrase higher yield loosely. However, like you mentioned, ratings are no guarantee of credit quality. Also, our assessment of companies in the high-yield category can vary. For instance, you are comfortable with Edelweiss whereas I am not. Not saying that there is anything wrong with them, just my own perception. So I will probably not purchase their bonds. That said, my key takeaway from this discussion is that it’s probably ok to put in a little bit of my money there. Caveat emptor, of course!
Subscribe To Our Free Newsletter |