THE JUNK-BOND MARKET: BACK FROM THE SCRAP HEAP.

The article discusses the increase of junk bond prices. The fear of recession has faded, which means junk bonds have lesser risks of default, plus the growth of spread over Treasury yields caused the price to increase and reduce yields. Although the price of junk bonds have increased, the author suggests that the safest approach is to buy bonds of established companies that have stable cash flows and have gone through financial restructuring.