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Reload this Page Corporate bond (Baa/BBB); 19.91%, 1 year, to good to be true? (bankrupt, Fidelity)
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Old 01-14-2016, 05:39 PM
 
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Hi, I was looking at CD rates in Fidelity, and noticed 19.91%, 1 year, Corporate.


What is that? Is it risky? Seems to good to be true. Can someone explain what a corporate bond is? Thanks in advance!
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Old 01-14-2016, 06:08 PM
 
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There are all kinds of firms on the brink of bankruptcy, thus one needs to understand what bond ratings mean --
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Old 01-14-2016, 06:27 PM
 
Location: Los Angeles
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The higher the yield the greater the risk. 19.91% would be HIGHLY risky.
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Old 01-15-2016, 12:07 AM
 
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It's definitely not "to" good to be true, but it is too good to be true.
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