Quotes About Junk bonds

It is not too bold a statement to say that a software development project is one of the riskiest investments a business makes. For example, the chance of a large software project being canceled increases with project duration. In the 1990s, those projects that exceeded two years of elapsed calendar time in development had a default rate that exceeded the worst rated junk bonds (something over 25%).

The credit quality of junk bonds varies widely.

If you are prepared for some risk, junk bonds pay about 5%, but they tend to get whacked when interest rates rise. Same with lower-yielding but higher-quality corporate bonds.

Junk bonds prove there's nothing magical in a Aaa bond rating.

In principle, junk bonds are basically useful, but they are used excessively and irrationally, notably in takeovers.