Corporate mergers and acquisitions pose risks to investors
Investing in corporate debt can provide investors additional portfolio diversification and enhanced returns; however, those benefits do not come without risk. As the market and corporations continue to transform and restructure themselves, investors must be cognizant of how their holdings may perform in certain circumstances. Investors can mitigate some of the negative outcomes by staying acutely aware of market fundamentals and how they affect their portfolio. An in-depth understanding of the bond indentures allows investors the ability to limit or better understand certain risks inherent to individual bond issues.