As the economy slows down in 2019, and the trade war continues, it seems more likely that the economy will fall into recession in 2020.
The growth of debt in the U.S. goes on, unabated. One particular area of concern is the junk bond market, non-investment grade corporate debt.
There are two ways to have a junk bond bear market:
a. as interest rates rise, the value of a bond decreases.
b. in a slowing economy or recession, a corporate issuer may not be able to pay back the principal and interest due on the junk bonds, thereby resulting in a default.
For an interesting article on the debt market: https://www.thebeartrapsreport.com/blog/2018/12/30/one-sky-high-junk-bond-maturity-wall/
Now can be the time for investors to reallocate their portfolio away from high yield bonds, and high yield bond funds. Complacency can be costly. Don’t wait until the bear market hits, before adjusting your portfolio to protect against losses.
If you have losses from high yield bonds or high yield bond funds, please feel free to contact
Attorney Robert M. Singer
2572 Whitney Avenue
Hamden, CT 06518
Serving all of Connecticut
Securities Arbitration for Investors.