4 ms·

nobody involved in buy/selling High-Yield debt uses the term 'Junk'. It's a term from the 80s before every major investment bank serviced that market. Even th

nobody involved in buy/selling High-Yield debt uses the term 'Junk'. It's a term from the 80s before every major investment bank serviced that market. Even the journalists at bloomberg are spinning clickbait language, sheesh ...

aje403 8y ago
This is correct. We use the term cryptocurrency today
Analemma_ 8y ago
That's funny, because of the two terms, "junk bond" seems to me to be the more accurate and descriptive one, while "high-yield bond" seems like a deliberately deceptive euphemism.
- jakelarkin 8y ago
  https://en.wikipedia.org/wiki/Bond_credit_rating https://en.wikipedia.org/wiki/Bond_credit_rating when major banks/investors refused to deal with BBB or lower they called it 'Junk'. When they realized 1) the credit risk can be safely managed with modern financial theory and instruments 2) there was money to be made ... they quickly adopted it and had to figure something out to drop the 'Junk' pejorative.
- nqzero 8y ago
  junk implies zero value, which is very far from accurate
NelsonMinar 8y ago
you should talk to more normal people and fewer high yield bond traders
kgwgk 8y ago
The ticker for one of the largest High Yield ETFs (SPDR Bloomberg Barclays High Yield Bond ETF) is JNK. The term is often used in the financial press: http://lexicon.ft.com/Term?term=junk-bond http://lexicon.ft.com/Term?term=junk-bond https://www.wsj.com/articles/near-junk-illinois-to-sell-more-bondswill-investors-buy-in-1524574801 https://www.wsj.com/articles/near-junk-illinois-to-sell-more...
- kolpa 8y ago
  Maybe that ETF is for Jank bonds that stall and jump around a lot?
Maven911 8y ago
I've only recently learned more about the bond space including high-yield vs. investment grade, bids wanted in competition, zero-coupon analysis. Do you know any good resources, books included, but especially sites that go beyond the theory and into the day to day lingo at a bond desk ?

aje403 8y ago

This is correct. We use the term cryptocurrency today

Analemma_ 8y ago

That's funny, because of the two terms, "junk bond" seems to me to be the more accurate and descriptive one, while "high-yield bond" seems like a deliberately deceptive euphemism.

jakelarkin 8y ago
https://en.wikipedia.org/wiki/Bond_credit_rating https://en.wikipedia.org/wiki/Bond_credit_rating when major banks/investors refused to deal with BBB or lower they called it 'Junk'. When they realized 1) the credit risk can be safely managed with modern financial theory and instruments 2) there was money to be made ... they quickly adopted it and had to figure something out to drop the 'Junk' pejorative.
nqzero 8y ago
junk implies zero value, which is very far from accurate

NelsonMinar 8y ago

you should talk to more normal people and fewer high yield bond traders

kgwgk 8y ago

The ticker for one of the largest High Yield ETFs (SPDR Bloomberg Barclays High Yield Bond ETF) is JNK. The term is often used in the financial press: http://lexicon.ft.com/Term?term=junk-bond http://lexicon.ft.com/Term?term=junk-bond https://www.wsj.com/articles/near-junk-illinois-to-sell-more-bondswill-investors-buy-in-1524574801 https://www.wsj.com/articles/near-junk-illinois-to-sell-more...

kolpa 8y ago
Maybe that ETF is for Jank bonds that stall and jump around a lot?

Maven911 8y ago

I've only recently learned more about the bond space including high-yield vs. investment grade, bids wanted in competition, zero-coupon analysis. Do you know any good resources, books included, but especially sites that go beyond the theory and into the day to day lingo at a bond desk ?