SEC Bulletins On Corporate And Junk Bonds

June 6, 2013

The Securities And Exchange Commission's ("SEC's") Office of Investor Education and Advocacy recently issued two Investor Bulletins about corporate bonds, and I commend both publications to all investors.  In "What Are Corporate Bonds?" the SEC explains the basics of corporate bonds and offers a number of helpful examples that explain pricing and various aspects of risk. In "What Are High-Yield Bonds?" the SEC discusses so-called "junk bonds"" and explains why such bonds are riskier.

At times, the SEC and other similarly situated regulators at all levels of government have a penchant for issuing bland-to-the-point-of-useless consumer advisories; and we are all aware of the seemingly inexhaustible supply of self-serving and self-promoting garbage that floods the Internet under the guise of press releases. Notwithstanding those trends, these two bond Investor Bulletins are welcome additions to the markets and should be read by all wannabe bond investors.  If nothing else, the SEC has given newbies a good place to start their due diligence.