If a low interest rate policy is adopted to stimulate the economy after the financial crisis, the monetary fund will be in a state of decline. High-yield bond funds with low credit ratings fell because companies that issue high-yield bonds are likely to default in the economic crisis.
In general, corporate bonds have priority over stock repayment. Generally speaking, bonds are safer than stocks. If a financial crisis occurs, the profitability of enterprises will decline and a large-scale debt crisis will break out. Correspondingly, bond funds will have different situations.
Bonds are securities issued by debtors such as governments, enterprises and banks in accordance with legal procedures in order to raise funds and promise creditors to repay the principal and interest on a specified date.