What is a junk bond?

Junk. Not a nice word. And when it comes to bonds, not a particularly accurate word, either. Junk is something useless, right? Something you want to toss in the trash? Well, "junk" bonds are definitely not useless. In fact they're extremely useful. Sometimes. Paddy Hirsch explains what a junk bond really is. #MarketplaceAPM #StocksandBonds #EconomicExplainers
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[@Chris-xc1vd]

Bond....
Junk Bond

[@torgarsteinbru3591]

this litteraly made me laugh, i can't belive it

[@jesuswalk129]

Thanks for the clarification man!

[@axtonkarson2634]

pro trick: watch movies on Flixzone. I've been using it for watching a lot of movies lately.

[@carterizaiah1341]

@Axton Karson Definitely, have been using flixzone for since november myself =)

[@coolbuddydude1]

Where did the money came from to rebuild the Pyramids?...Junk Bonds.

[@joeibarra8322]

coolbuddydude1 casino quote

[@blvckphillip3917]

The entire reason I'm here right now.

[@charlygradomenor]

I had to do a little research to know who are Milken and Wynn, but now and thanks to your answer I can rest in peace... Thanks for your time. Greetings

[@nsb6703]

Good explanation. btw DeNaro mentions JUNK BOND in the ending of Casino movie. Thats why i'm here.

[@iloverykeemdoggydogg7713]

bns413 lol same lmaoooooo

[@ginnymonroe4918]

Hi Paddy Hirsch, thanks for this excellent "Junk Bond" breakdown, I was R&Ding for a story. Thanks Ginny Monroe

[@betterboulder]

He looked like DeNiro in the thumbnail

[@dirmanbw336]

3:55 is it just me or the sound of the pen is so real

[@scudder91]

The risk is that you're buying a debt from someone who doesn't have a good record of paying back their debts. They offer a higher interest rate to tempt you into buying them. The real scandal in recent times was how all the shitty junk bonds were re packaged as safe bonds so the people who bought them were conned into taking all that risk on lending money to people who didn't pay it back without even getting a decent yield in return.

[@videoclip2013]

nice good explanation !!!!!!

[@DeathByMercy]

De Niro's character was referring to the junk bonds used to build casinos such as The Mirage. Google Michael Milken and Steve Wynn, and you'll know better as to what I'm talking about.

[@sriramvecham4369]

Not to change vibe or something. I am a straight guy but I definitely wish to date this guy.

[@abhinavitsmebellamy]

Thank you, Sensei!!

[@nadhirumohamed1781]

Wow. This was really insightful. Thank You.

[@drswish629]

Excellent !

[@JohnKyleSutton]

You’re awesome, Paddy!

[@michalkononenko9833]

It's because from the company's point of view, it knows that based on the fact that it's such a safe investment, it can issue bonds with a lot lower yield, because the investors are taking a smaller risk. Junky companies pay out a big yield because they have no other choice, since due to the risk inherent in investing in them, investors want to make their money quickly.

[@pamelasimphiwe6135]

Thank you so much for explanation ❤️

[@rameshsitaraman5826]

Nice explanation

[@charcoaljohnson]

then you take the spark plugs and put them in a box labeled AAA and then sell the box.

[@AshAlhashim]

Well done, great analogy.

[@carlashworth2904]

Really helpful, thanks a lot!

[@kvkasus]

So, the junk bond or high yield bond is a cheap and risky investment with high returns. Isn't it ?

[@LuccianoNova]

kvk chaitanya yes. High yield, high risk

[@insightfulvideos]

Thanks, great explanation.

[@JeffAlu-123]

These are great videos, thanks so much!

[@progressivephilosophy414]

very good explanation

[@SoyAussie]

i dont get why these high-quality bond companys would give low returns on bonds??? if they are good companys with alot of money, wouldnt they be able to pay a higher yield???and vice versa...how would "junky" companys be able to pay out a high yield?

[@mek86]

You maybe thinking stock vs bond. Bond is a loan, so if they are a good company they may not need that much in loans and can offer less. If they aren't so good and need money badly, they will still make a profit with your money and pay back the interest. Help building their company and maybe won't need the loans at a later date. Of course this always runs the risk of losing the money if the business doesn't do so well.

[@h1rschp]

@micidragan The three big ratings agencies all provide default stats for the bonds that they rate. Not surprisingly, the rate of default during the bad old days of 2009 were very high, maybe 15%, but lately, high-yield default rates are way down, to roughly 3 percent. Moody's Analytics is a good source.

[@LaCorvette]

Thank you mate!

[@ramazkutateladze538]

Junk Bonds are those who tried to mimic James Bond but could not succeed

[@merchantsailor]

can you describe a convertible bond, what is coupon and how is yield calculated?

[@IgorSteinberger]

Great Video.

[@Nickiller6969]

Well explained thanks

[@tauheke]

Ditto, from Australia!

[@suhailchitrath926]

Loved ur class... keep it coming

[@arifulchudury5684]

U

[@muhammedusman8442]

doing great job sir.loveeeeeeeeeeeeeee

[@robinsl27]

So that's that the reason the gov't went after Michael Milken in the early late eighties.

[@turrafirmaguitarchannel]

I was left wondering who issues bonds, how are they sold and how does it happen that you lose your money? Does the company have to go bankrupt to default?

[@charlygradomenor]

I heard this term in the movie Casino (1995). How this apply in the gambling industry? Can somebody help me?

[@khgriffi]

Needing a drink!

[@the_good_ghost]

but what about goverment bond like turkey ? can they not paying their bond ?

[@smartdust1]

Often junk bonds are not rated. Why?

[@Nanofuture87]

Issuers pay ratings agencies to rate them. If they know they're junk, there's no incentive to pay them for a rating.

[@iloverykeemdoggydogg7713]

This nigga looks like Robert de Niro 😂😂😂😂😂😂 in the picture the face expression was so him

[@mdabdullahilmaruf5025]

I do not any work. I am an unemployment. My dream i will set up a large gold mining project in the Atlantic ocean in of usa. But i have no mony. So i have dicided i will take large syndicated loan by issed high yield bond. Now i will can??

[@silhouette1998]

LOL, I'm a 13 year old girl and for some reason I'm obsessed with these videos...
:P

[@iloverykeemdoggydogg7713]

Jina Park how old now

[@thinkaboutit3366]

I like your drawing of a woman 👩. Th u for the schooling 👍

[@TheMultighoul]

@silhouette1998 The Fact that you can understand this stuff and/ or interested in it. You are probably gonna be a Millionaire by the time you are 23.

[@spooky_zen]

welp bonds

[@deadbirdflyinghome]

Is it just me or is the whole bond market an example of greed and injustice? I mean, why not good companies pay 15% yield because they can afford it, and troubled companies pay 2% because they're broke? Isn't this what kills a country? A country like Greece is broke, given junk status, and now must pay yields through the nose, effectively making it MORE broke. I lend Millionare Jim $100 and expect $102 back. I lend poor joe $100 and expect $115 back. The world is cruel, we need reform.

[@houdapurple]

@SmackNcrack01 that's mean , i think he's quite handsome and most importantly he does a great job teaching us so hush lol

[@jct3636]

junk bond is just another way of ripping off the sheep

[@garybaker466]

That's a bad analogy.

[@forever_golfer1981]

Many men have sold their souls for those 'little crumbs'.