Hertz Set to Join ‘No-Coupon’ Club

The video discusses the challenges faced by Hertz after issuing bonds in November, as economic conditions have changed drastically, leading to potential insolvency. Investors who bought these bonds risk losing their investment without receiving any returns. Despite these risks, other companies like Avis and Norwegian Cruise Lines are attracting investors by offering high-yield bonds, which are appealing due to their potential returns despite the distressed economic environment.

Why might investors still consider buying risky bonds despite the current economic situation?

What strategies are companies like Avis using to attract investors?