I saw an article on seekingalpha where the author was making the case for 'baby bonds'. These are usually listed with a name like 'n.nn% Notes due 2024', with the percent being 6%, 7%, 8% or so. His case was that despite the Covid blip of Mar 2020, the price remains fairly stable over years. An example is ticker : SACC. Why not move all my uninvested cash into them to collect the yield, and sell when I want to invest in something? It sounds so easy -- which makes me think I'm missing important details. Any downsides or unknown risks, or anyone had a bad experience with them? Considerations I can think of off the top of my head: - be sure to look into to them to diversify, be sure a collection of 10 of them are not all the same company or industry - tax liability makes muni CEF's about the same yield, but muni CEF's have more price volatility, so would miss out on potential capital gains - I just looked at a 4 - 5 charts, but are there cases where the bond payer(s) defaulted, and it went to $0? - SACC (prime example) only traded 445 shares Friday, so illiquidity could be a risk - do they have complicated tax docs or filings, like K-1's from MLPs? (Those are so bad, I accept not getting their high-yield just because of the tax filing headache)