Junk bonds get even junkier - InvestingChannel

Junk bonds get even junkier

“The rapid and worsening sell-off is a growing concern for stock investors since junk bonds and stocks tend to generally move in the same direction. Mounting concerns about rising defaults by junk-rated companies — those with the lowest credit ratings — are stoking fears things could get worse before they get better. “We haven’t reached full-fledged panic, but it’s approaching,” says Marilyn Cohen of Envision Capital Management.”