Ep. 536: The Most Important Thing with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
How to Buy High Yield Bonds That Survive
Moody is now saying that B-rated bonds are a bad buy without any reference to price. So in other words, there's no price at which a company that has some credit risk is worth investing in. Before I turned to high yield bonds in 78, I was part of the bank's machinery to buy the bonds of the stocks of America's best companies. The average stock since the post-war has traded at 16 times its next year's earnings. These were trading at 80 and 90 times. Why? Because they were so good. But this is a great company. There's nothing to go wrong. And if you pay 80 or 90 times, that's fine. Here
Play episode from 30:45
Transcript
