was comparing bonds on the app
some are showing like 9% some are 11 to 12%
both look similar to me at first glance
so what’s the catch here. why wouldn’t everyone just pick the highest one
+1
i also just sort by highest yield first lol
feels obvious but also feels like i’m missing something
this is what i’m seeing btw
like why wouldn’t i just pick the 11.5% one here
That’s a good example.
Higher yield is usually compensation for higher risk. The market is not giving you extra return for free.
So when you see 11 to 12%, the question is not this is better. It is what risk am I being paid for.
me 2 mins ago seeing 11.5% and thinking i cracked the code 
Start with the credit rating.
That’s the simplest way to differentiate. Higher-rated issuers will offer lower yields because the risk is lower. Lower-rated issuers need to offer higher yields to attract investors.
So that 11.5% bond will usually have a lower rating or a different risk profile.
yeah think of it like
no one is giving extra return for free
there’s always some catch behind it
Also worth thinking about whether the additional yield is actually enough compensation for the incremental risk.
In many cases, investors focus on the number without evaluating that trade-off properly.
Seen this many times.
First instinct is always highest return. After a while, you realise consistency matters more than chasing that extra percent.
got it
this helps
i was definitely just chasing the highest number blindly 