Have anyone heard of high yield bonds? Do u know what are the return for these kind of bonds?

Question

i noticed from a GEindex site that they are involved in high yield bonds. GEindex pays rates of 2% pre day to investors. If they can pay such high premium I just wonder how much they make by dealing in high yield bonds?

Answer 1

Another name for high yield bonds is "junk bonds." Although they pay a high yield, they often default... and you not only lose the interest but your principal as well! If you want some high yielding bonds that are AAA rated and insured as well, go with some Collateralized Mortgage Obligation bonds (commonly called CMO's). Best advice on these bonds: Don't pay a premium for a higher rate of return; sometimes these bonds are called early and that means you will only get par value ($1000) per bond even if you paid a premium for each bond (say, $1,020). Always pay par or a discount... and of course, discounts are always available on longer-term bond investments.

Answer 2

How many times are you going to ask this question?

It only takes once, to get the answer...IT IS A SCAM

If you want a different answer, go and invest in it, and LOSE YOUR MONEY.