Junk Bonds as Indicator of Overall Market Risk

アップデート済
The decline in junk bonds is generally an indication of high market risk. In this type of enviornment, investors of junk bonds demand higher yields to compensate for additional risks.

As bond yields and prices are inversely correlated, higher yields cause junk bond prices to fall; a repeating pattern over the last two decades.

When markets face a significant crisis, junk bonds fell along with other risk assets.
ノート
Monetary Policy Decision Tree of 2022-2023:
スナップショット
BAMLH0A0HYM2DXYFundamental AnalysisTechnical IndicatorsSPX (S&P 500 Index)Trend AnalysisVIX CBOE Volatility Index

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