In addition to the rating changing circumstances are more likely but the obligor currently has more derisively as junk bonds.
Beginning of dialog window. The European Securities and Markets - Chapters Chapters.
Investors can profit through buying junk bonds, but they also are at greater risk of losing their investment, as these kinds of companies tend to have liquidity issues. Under the Credit Rating Agency Reform Act , an NRSRO may be registered with respect to up to five classes of credit ratings: 1 financial institutions, brokers, or dealers; 2 insurance companies; 3 corporate issuers; 4 issuers of asset-backed securities; and 5 issuers of government securities, municipal securities, or securities issued by a foreign government. You need to have a high risk tolerance to invest in high-yield bonds. Withdrawn - WR
