BUS WK 2 RESPONSE. Respond to Patrick Clark & Christopher Jefferson

Respond to Patrick Clark & Christopher Jefferson post/135 words each
PART 1
Christopher Jefferson:
This week we were task to talk about Junk bonds, also called high yield, and spectacular bonds. Before we get into the root of the discussion lets define Junk bonds, per ("What Are Junk Bonds and How are Junk Bonds Rated?," 2003) Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments. High yield bonds have been use dated back to the 1970s-1980s, these bonds are use by smaller startups, or company that are in a financial bine and need capital to grow and expand. These bonds have a high interest to attract investor to give capital for that reason, these can lead to problems if the loans are defaulted on meaning no one gets their money sending company and sometimes investor into bankruptcy.
Do I think high yield bonds are good for retirement accounts? The answer to that question is no and yes. If we look at the pass you can see the crash of the S&L market, Saving & Loans, in the 1970s- 1980s, Dot.com era of the1990s, and then again in the house market collapse of 2007-2009 junk bonds were at the core of all of those incidents. ("History of High-Yield Bond Meltdowns," 2016) High yield bonds can be good for a little while on coupon returns but more often then not the default when looking at long terms’ principal gains. With that said it not a bad idea to diversify your portfolio high yield bond but, not too many, make sure that when dealing with retirement most of the bonds that you invest in are rock solid.
PART 2
Patrick Clark:
Greetings Class,
One merger rumor that has floated around recently is of Tesla having and interest in a buy-out of Volkswagen. According to Wayne Duggan (2019), rumor has it that Volkswagen CEO Herbert Diess has expressed interest in the buy-out as he "believes Volkswagen could benefit from Tesla's battery and software expertise."
If true, this would be considered a horizontal move, as the merger is expanding into a similar type of production (Stengel, 2012). While on the surface many people do not seem to be taking this potential news seriously, it could be a mutually beneficial - albeit unexpected - move for both companies. Duggan pointed out that Tesla has had press and growth problems that may be allayed if they were to garner Volkswagen. If the CEO's words are true, it appears Tesla has things that Volkswagen are interested in as well. Issue here is, it simply does not seem terribly likely at this stage, as investors are basically ignoring the news. At this point, it is purely gossip. A good deal more news will need to flow down before it truly attracts the interest of investors.
References
Duggan, W. (2019). Tesla Ticks Higher On Rumor of Volkswagen Interest. Benzinga. Retrieved from https://www(dot)benzinga(dot)com/m-a/19/08/14312456/tesla-ticks-higher-on-rumor-of-volkswagen-interest
Stengel, D. (2012). Economics of Organization. Managerial Economics Principles. Flat World Education. Retrieved from http://saylordotorg(dot)github(dot)io/text_principles-of-managerial-economics/s05-economics-of-organization.html