This is what the experts are doing with their bond exposures - increasing their provisions against losses.
Meanwhile, here's a strange headline: "Some junk bonds are safer than stocks".
Well, duh! In an insolvency situation, ALL junk bonds are safer than stocks. Whoever wrote the headline doesn't know much about stuff.
The article itself is an basic starter guide to where bonds sit in the capital structure. However, it doesn't mention a key point: that equity investing should be about buying into a growth story (because you get wiped out if anything goes wrong), whereas buying bonds is largely defensive.
3 days ago