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What percentage of junk bonds are bought at issuance and held to maturity by investors? 0.5%? Maybe? For literally everyone else, it is, in fact, price that ma
by all_blue_chucks 8y ago
What percentage of junk bonds are bought at issuance and held to maturity by investors? 0.5%? Maybe?
For literally everyone else, it is, in fact, price that matters.
- soVeryTired 8y ago> For literally everyone else, it is, in fact, price that matters. I made the distinction between price and total return above because an asset's price can remain more or less constant while still being a profitable investment: for example a utility company with a high dividend yield. Let me try another tack. Would you rather own non-voting equity or junior debt in a company that is about to strike a deal that will make them wildly profitable?