Junk Bonds Don’t Pay Enough for the Risk, Marty Fridson Says

This month’s rally crushed corporate debt yields to a level that does not adequately cover the risk, warns junk bond guru Marty Fridson.

“High-yield bond valuations are severely out of whack with the yield premium that would fairly compensate” investors, wrote Fridson, whose debt analysis has been studied by Wall Street for decades, in a report Tuesday.