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Okay so listeners. You might remember that back around the holidays we the indicator jumped into the bond market. Yes we did. We bought a bond turned out though. You know bonds are really expensive so we had to buy. We bought the very cheapest blonde. We could find still by the way cost. Two hundred eighty seven dollars and we had to buy two of them so the total came out about six hundred dollars so for a COUPLA podcasters now not cheap not cheap but the cheapest that we could find and it was what is known as a junk bond so bonds are basically loans when companies want to borrow money. One of the ways they can do that is to issue. Bonds investors can buy those bonds and eventually get paid back along with some interest but just how much interest is bonds. Pay Largely depends on the company itself so if a company has a lot of cash on hand and not much debt. And it's just a really safe company. Then lending that company money or buying one of its bonds because it's the same thing is just considered a really safe investment take Microsoft it's bonds are rated AAA that is the highest possible rating. So they don't have to pay a very high interest rate or yield so if you bought a Microsoft Bond Right now one that matured or paid out next year you would make about one point three percent on your investment not very much money but that is because those bonds are considered so safe. Yeah then there's the bond we bought not so save different. Yeah it's a company called Hornbeck offshore services which supplies equipment and logistical support oil companies when they drill for oil in ocean. If we hold this bond until it expires next year we would make a hundred and forty six percent return on our money. That's a big if though. Hey risk pays baby. Yes a lot of risks. Though I was walking down the streets and you said we hornbeck and audibly gasped clear. Boston covers the bond market for Bloomberg. Hornbeck is an extremely risky company. I spent a lot of time looking at these companies. And you guys didn't just pick a higher quality junk bond. A higher quality which had clear says the junk bond market is a pretty big and varied place and not al junk bonds are created equal. So there are three basic tears. We mentioned company. Credit Ratings. Triple A. Aa SINGLE-A TRIPLE-B CETERA. These are all desirable ratings for a company. These are so called investment grade ratings. It's a lot like a person's credit rating if you're below triple B though you're now in junk bond territory like our bond. The FIRST YEAR IS DOUBLE B. That is what we would call a p high quality drunk No one is worried about them. Not being able to pay back their bonds for instance some of Ford Motors bonds are in that category also. Jc Penney and twitter in a record number of US companies are issuing junk bonds. Now Clara says companies started barring unprecedented amounts of money and using it to buy up other companies and to expand their operations and do all kinds of things. And why not? The money's cheap but all that debt will bring your credit rating down and that's why so many big stable companies are in the junk category right now and then sort of the biggest part of the junk market is sort of a single be rain so call it the middle you know and so that's kind of what people consider to be traditional junk so you know a little riskier companies like Bethlehem. Steel Revlon Uber. A lot of companies. That are still considered to be solid companies. Just maybe having some cash flow problems and then the lowest here is triple c That's where we bought. Tell me about this lowest here These are companies that definitely you could think about potentially running into trouble and not being able to pay their obligations back like maybe going bankrupt or something like even in the best of times. Investors are a little wary of really loading entrepeneur triple seat DOT hornbeck offshore services is in that lowest. That's where we invested Hornbeck. The company is based in Covington Louisiana. A little city right near the Gulf Coast Hornbeck was founded in nineteen ninety seven by Todd Hornbeck and he is still the company's CEO. Hornbeck has about a thousand employees and it owns a fleet of boats that it hires out to supply people and equipment to offshore drilling sites.