Point Counter-Point Should Financial Institutions Invest in Junk Bonds? Point Yes. Financial institutions have managers Counter-Point No. The financial system is based who are capable of weighing the risk against the on trust in financial institutions and confidence that potential return. They can earn a significantly the financial institutions will survive. If financial insti. higher return when investing in junk bonds than tutions take excessive risk, the entire financial system is the return on Treasury bonds. Their shareholders at risk. benefit when they increase the return on the Who Is Correct? Use the Internet to learn more portfolio about this issue and then formulate your own opinion