- Credit ratings are very subjective and should therefore be taken with a grain of salt.
- Junk bond yields have been declining since January, but their volatility represents a huge risk.
- Be careful with international bonds as you might be exposed to greater risk for lower yields.
Last week we discussed how dangerous common retirement advice can be. Currently, One of the biggest risks comes from the low yields on bonds because any kind of interest rate increases would immediately lower bond values which might have a severe impact on your retirement. But as there are many types of bonds, today we are going to discuss and compare the various yields and the risks involved within bond investing. More →