Customer Quote by Merton Miller
“Junk bonds prove there's nothing magical in a Aaa bond rating.”
About This Quote
Source Paper: Journal of Finance, 1995
Junk bonds demonstrate that a top credit rating does not guarantee safety.
In simple terms: High ratings don’t ensure safety.
Assess risk beyond ratings.
Themes
Mood
Type
When to use this quote
- investment decisions
- portfolio diversification
- risk management
- financial education
Key Concepts
Questions to Reflect On
- What other metrics should investors consider?
- How do ratings influence market behavior?
Ratings still provide useful signals.