Two key pointers in the past week indicate that these securities have become very risky for institutions and individuals.
The first warning was a sudden sell-off of US Treasuries on the mere hint that some US Federal Reserve Board members believe that the central bank should stop buying bonds at some stage this year.
The second warning shot was that average yields of high risk so called "junk" corporate bonds fell to a record low of 5.89 per cent, a spread of only 400 basis points above US government bonds. This illustrates that some advisors, traders and investors have thrown caution to the wind and are risking money on over-borrowed, poor performing companies that could default on their debt if business conditions worsen.
http://www.businesstimes.com.sg/premium/top-stories/name-bond-and-outlook-very-risky-20130107