When Junk Looks Pretty

摘要

You coulda bought risk last year. You woulda made a bundle. The junk bond market delivered a total return in the neighborhood of 57% for 2009, a blend of fat coupons and rising prices. You could have made a whole lot more than that buying common shares of the junkiest companies (see story, p. 69). Risk taking was amply rewarded.rnThe big rebound has a lot of people breathing a sigh of relief. Is the debt crisis over? Far from it. As the cover story by Daniel Fisher explains (p. 62), the world is still awash in debt that might not get repaid. This year will see tens of billions in corporate bonds sinking into default. There's no telling when sketchy borrowers like Venezuela or California start stiffing bondholders.