Warren Buffett is warning investors to be wary of corporate junk bonds as yields have fallen sharply.
At the annual meeting over the weekend of the billionaire's Berkshire Hathaway holding company, Buffett said the best time to buy high-risk corporate debt has passed.
After buying $7 billion of junk-rated securities in 2002, Buffett said he has "not increased to any degree" his holdings this year. He did not say whether he has sold any bonds.
The yield on an index of 100 junk issues tracked by KDP Investment Advisors has tumbled to 8.93%, a four-year low, from 10.72% at the start of this year.