If an entity is at a heightened risk of defaulting, who is lining up to buy those junk bonds? What’s the benefit? From vantage point, purchasing junk bonds holds much more downside risk than there are upside. So, what’s the point of purchasing these bonds?
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Also Wall Street has a way of memory holing investment vehicles that blew up. Junk bonds are high yield. Never hear the term Leveraged buy out bc it got a bad name in the late eighties (?). private equity has a nicer ring doesn’t it?
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