Junk bonds

This means that an investor who holds bonds that carry an element of default risk should in theory take this default risk into consideration when calculating the duration of his or her portfolio. In practical terms this only has an effect with unrated or junk bonds, which have default probabilities much greater than 1%. Figure 8.5 shows how the theoretical duration of a bond decreases as its assumed default probability increases. 

Corporate bonds fall into two broad credit classifications investment-grade and high-yield (or "junk") bonds. The largest holders of corporate bonds are institutions,- the complexity as well as the fact that corporate bonds are fully taxable at all levels (federal, state, and local) usually makes individual investors shy away. 

If you end up buying junk bonds online and lose your shirt, you can bet there will be more than just a complaint e-mail sent to the firm. There are serious liability issues here, and to protect themselves, online brokerages have refrained from offering all of their possible fixed-income inventory that can be provided by their trading desks and commingled inventory systems. 

Studies by Svec and Junk on the mass spectra of dipeptides and DKPs lead to the conclusion that ionization occurs at the nitrogen atom resulting in charge localization, followed by the main fragmentation due to bond ruptures (3 to the charged nitrogen. 

Steed, J. W., McCool, B. J., Junk, P. C., Hydrogen bonded polymers and oligomers from metal salts and 18-crown-6. J. Chem. Soc., Dalton Trans. 1998, 3417-3423. 

Junk, G. A., Avery, M. J., and Richard, J. J. 1988. Interferences in solid-phase extraction using C-18 bonded porous silica cartridges, Anal. Chem.,6W. 1347-1350. 

Junk. P.C. Atwood. J.L. Hydrogen-bonded tetramethyl-ethylenediammonium and triphenylphosphonium complexes derived from liquid clathrate media. J. Coord. Chem. 1999, 46. 505-518. 

Junk T and Catallo WJ (1997) Hydrogen isotope exchange reactions involving C-H(D,T) bonds. Chemical Society Reviews, 401-406. 

Clearly, investors that seek to invest in bonds that sell in high denominations, such as certain mortgage-backed and agency bonds, or bonds that are too "complex" for individual investors, including convertibles, sovereigns, junk, and derivative securities, would be better off investing in these securities through mutual funds. 

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