Please read the whole post before answering.
I know that at maturity, the bond owner should receive back the capital in full.
But what happens if you buy a bond of a less stable government?
A government that has a rating of B-, or CCC-?
Can that government default and never pay you back?
Or are you always guaranteed your money back at maturity when it comes to governments, and there is a way to payback owners even if a country defaults? (For example - another country gets involved and injects them with money to help)
For those interested, I saw Egypt and Tunisia offer some high yield bonds, but they have B- and CCC- S&P ratings, respectively, and was wondering how risky would it be to buy their bonds.
Submitted September 29, 2023 at 03:19AM by TheGeneralAnimal https://ift.tt/InFghaV
