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I would argue that a "regular" bond refers to government-backed securities, basically AA at a minimum. When people want to talk about corporate bonds they're ca
by ng12 8y ago
I would argue that a "regular" bond refers to government-backed securities, basically AA at a minimum. When people want to talk about corporate bonds they're careful to refer to them as junk bonds.
- kgwgk 8y agoJunk bonds (high yield) are a small subset of corporate bonds. But it’s true that even investment grade debt is not as good as it used to be. https://www.bloomberg.com/opinion/articles/2018-07-10/corporate-bonds-are-getting-junkier https://www.bloomberg.com/opinion/articles/2018-07-10/corpor...
- cmurf 8y agoLiterally none of this is correct. Bonds do not inherently or even typically refer to government securities. And not all government issued debt is AA, for example Mexico bonds are currently rated BBB+. Junk bonds are speculative rather than investment grade, quite a lot of corporate bonds are investment grade.