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How to Buy High Yield Corporate Bonds

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From Quick Guide: Junk Bonds 101

Summary: High yield corporate bonds, or junk bonds, are bought in the same method as any other corporate bond. Place limits and price points when buying junk bonds with help from a personal asset manager in this free video on the bond market and money management.

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By Roger Groh
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Roger Groh is the founder of Groh Asset Management. He manages portfolios for many types of customers, including customers seeking growth, income, stability or international customers.read more

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Video Transcript

"Hi, I'm Roger Groh with Groh Asset Management. We're here today to talk about buying high yield corporate bonds, or junk bonds. Really, these are like any other traditional bond, or at least, that's where they started out. And as a result of some mismanagement within a company, the price of the bonds have gone down overall, and the yields have gone up. The way that you would buy them and sell them is no different than any other corporate bond. You would go through your stock broker or discount broker, or perhaps, bank, and indicate to them the name of the bond, the cusip number on the bond, and the particulars. The date that it matures, and the rate of interest, so that you've really identified the specific bond that you want to buy. Give them a price point, a hundred, sixty, fifty, forty, thirty, whatever it might be, and let them go at it. Also, and another way to go about it is through an initial public offering of bonds, where the bonds are just being issued, but where the yields are higher. And again, you would go back through your broker or bank to do that. Remember, identify carefully what you want to buy, use the cusip and the description to make that happen. Put limits and price points to be sure that you buy it at your price, not the price that they want to sell it to you at, and, best of luck! I'm Roger Groh, and thank you very much for spending a few minutes with me."

eHow Article: How to Buy High Yield Corporate Bonds

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