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Junk Bonds and Public Policy

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Over the past few years, the financial public has developed a fascination with the growth in the market for so-called junk bonds. In this Economic Commentary we would like to shed some light on the role of these instruments by providing a working definition of the term "junk bonds," by discussing their place in the financial world, and by examining a few of the issues surrounding concern over the growth of corporate debt.

Over the past few years, the financial public has developed a fascination with the growth in the market for so-called junk bonds. In this Economic Commentary we would like to shed some light on the role of these instruments by providing a working definition of the term "junk bonds," by discussing their place in the financial world, and by examining a few of the issues surrounding concern over the growth of corporate debt.


Suggested citation: Fons, Jerome S., 1986. "Junk Bonds and Public Policy," Federal Reserve Bank of Cleveland, Economic Commentary, 02.01.1986.

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