Interest rates are way too low, well below the inflation rate, resulting in bond holders earning a negative rate of return. The risk premium for owing speculative grade debt is also way too low relative to historic averages, and with many economists predicting a recession, future defaults rates would most likely more than wipe out the current risk premiums available on a well diversified portfolio of junk bonds. Laddering a fixed income portfolio can help reduce yield curve risk, but interest rates are currently so low that fixed income is simply a bad investment anywhere along the curve.
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