Bond ratings?

what r advantages and disadvantages of investing in junk bonds relative to investment grade bonds???

Investment grade bonds have a high probability (higher than kung bonds) of repaying the principal at maturity, i.e. the company issuing the bond not defaulting. The coupons (interest rate payments) are lower than for junk bonds.

Junk bonds pay higher coupons to compensate the investor for the risk of the company not repaying the loan.

I would not recommend to invest in a single junk bonds, but hold a reasonably divertsified portfolio. For investment grade bonds, especially AAA (for example US treasuries), single issues with an adequate maturity may be reasonable for investing in.

Biggest advantage: they are dirt cheap.

Biggest disadvantage: they can end up dirt.

There are companies specializing in finding possible upsides of BB rated bonds, for example. There are people who are specialists in using junkbonds to manipulate ownership or management of corporations that are underperforming. But this is no market for amateurs. You can lose everything in your portfolio almost overnight.

If you have to ask the question you did, it indicates to me that you are no way ready to consider investments in this type of bonds.

Junk Bonds are high risk, high return bonds which I don't think is traded in the Exchanges. These are offered by high networth individuals who has the backing of Leading Investment bankers for takeover or Mergers and Acquisition activities. I am not sure whether these bonds created specifically for this purpose ever get into the exchanges for trading for low amounts. Companies who accept these types of bonds actually give it back on maturity which may be shorter for reclaiming the money promised for parting with their shares in their company whent the takeover takes place.