Hi folks, I'm starting to research corporate bonds to understand some of the tradeoffs. I understand CCC are very risky (company is at risk of going bankrupt) whereas BBB has less risk, and most companies should survive a recession at BBB level. Is this accurate?
Also for CCC companies some of the YTM are very attractive, but I guess this reflects the risk of the company going under. Case in point, BBBY has a 50% YTM but I understand this company is going through a massive restructuring. Are they worth looking into or do you stay far far away?
Related, if a company goes bankrupt do all the bonds principal go poof, or is it possible to get some principal back?
thanks!
Submitted September 07, 2022 at 01:42AM by achillezzz https://ift.tt/q8F4Ivk
