Investors are frequently tempted to take on high levels of risk to score hefty gains, says John Greenwood of Financial Post.
He says they often buy bonds issued by companies known as speculative grade issuers despite their potential hazards.
But, Moody’s Investors Service has some advice for prospective bond buyers: When choosing between U.S. and Canadian issuers, it’s best to look north of the border.
Moody’s says Canadian bonds offer more security and tighter covenants. Read more.
In other news, global companies scrambled to sell bonds in the U.S. recently, reports Financial Times.
Borrowers wanted to lock in at low rates ahead the upcoming Fed meeting, and created the best session for investment-grade debt issuance in more than three years.