Switch to ADA Accessible Theme
Close Menu
Free Consultation: 888-976-6111
Home > Product Types > Junk Bonds

Junk Bonds

Junk bonds, also known as non-investment-grade bonds, high-yield bonds, or speculative-grade bonds, are bonds rated beneath investment grade by credit rating agencies (such as Standard & Poor’s, Moody’s, and Fitch Ratings). Junk bonds have a greater risk of default and, therefore, pay a higher rate of return (yield) in order to induce purchasers to invest.

Unfortunately, bond credit ratings are deceiving and many investors do not even realize that they own junk bonds. For instance, under the Moody’s rating scale, a bond rated “Ba1” is considered junk. Under Standard & Poor’s and Fitch Ratings, a bond rated “BB+” is considered junk. To an investor, Ba1 or BB+ often sounds safe even though it is very risky. Even worse, very few people realize the high likelihood that junk bonds go into default.

Financial advisors must use extreme care in conducting a suitability analysis prior to recommending junk bonds.

We have successfully represented many investors who were harmed by unsuitable recommendations of junk bonds. Please contact us for a free and confidential case evaluation if you believe that you have lost money due to investing in junk bonds.

Contact Us For A Free Case Evaluation
Latest Blog Posts
  • FINRA Bars Ex-LPL Broker Patrick Coogan: “Reckless Misrepresentation”

    Former Baton Rouge, Louisiana-based LPL Financial broker Patrick Coogan (CRD# 4576580) has been barred by the Financial Industry Regulatory Authority...

    Read More
  • Lazaros Coss: FINRA Bars Los Angeles Broker

    Lazaros Coss (CRD# 6476885), previously a broker registered with Northwestern Mutual Investment Services, was recently the subject of a disciplinary...

    Read More
  • Tim Hetrick: Boise Broker Sanctioned Over Alleged Forgeries

    Former US Brokerage broker Tim Hetrick (CRD# 2048466) has been sanctioned by the Financial Industry Regulatory Authority (FINRA) in connection...

    Read More
  • Steve Lu: Ex-JP Morgan Broker Investigated and Barred by FINRA

    Steve Lu (CRD# 6856088), previously a representative of JP Morgan in Altadena, California, has been sanctioned by the Financial Industry...

    Read More
  • Previous
  • Next