Brownian motion
Brownian motion refers to the tendency of high-yield (junk) bonds to experience a large diffusion component—that is, information relative to the bond's investment quality and pricing vis-à-vis the issuer's financial condition tends to filter down to investors gradually.
Brownian motion
Brownian motion refers to the tendency of high-yield (junk) bonds to experience a large diffusion component—that is, information relative to the bond's investment quality and pricing vis-à-vis the issuer's financial condition tends to filter down to investors gradually.
Additional Information
This feature of high-yield bonds allows investors time to sell prior to default.
