Skip to main content

Exit WCAG Theme

Switch to Non-ADA Website

Accessibility Options

Select Text Sizes

Select Text Color

Website Accessibility Information Close Options
Close Menu
Carlson Law, P.A. Motto
  • Free Consultation
  • ~

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.

Share This Page:
Facebook Twitter LinkedIn

By submitting this form I acknowledge that form submissions via this website do not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.

Latest Blog Posts

Michael Leahy: Red Bank Rep Barred Over Alleged Supervisory Failures

Former First Standard Financial Company broker Michael Leahy (CRD# 1899498) has been barred by the Financial Industry Regulatory Authority (FINRA) from acting in any principal capacity, according to FINRA records....

Read More

Ex-LPL Broker John Scott Sanctioned, Barred

Former Phoenix, Arizona broker and investment adviser John Scott (CRD# 2407610) has been barred by the Financial Industry Regulatory Authority (FINRA) in connection to allegations he participated in undisclosed outside...

Read More

David Martirosian: NYC Rep Barred Over Trading Allegations

David Martirosian (CRD# 5261144), previously a broker registered with Joseph Stone Capital in New York City, has been sanctioned by the Financial Industry Regulatory Authority (FINRA) in connection to allegations...

Read More

By submitting this form I acknowledge that form submissions via this website do not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.

Skip footer and go back to main navigation