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Looking For Higher Yields? Try 'Junky' Municipal Bonds

Saturday, August 11, 2012 - 10:12 AM
This Wall Street Journal article describes the benefits of junk municipal bonds that have higher risk of default than bonds labeled investment grade. It does warn of the added risks:
Junk bonds are riskier than other bonds, and therefore aren't for investors who value short-term protection of capital over long-term return potential (like many retirees). Investors who do buy junk munis should do so through funds to get as much diversification as possible, and should buy small amounts, given the higher risks.

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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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