In his research, Cramer found that the vast majority of distressed paper revolves around minerals, mining, steel, iron, coal, oil drilling, oil service, natural gas and oil. Given how difficult all of these industries have become, there is no way Cramer would touch them with a 10-foot pole.
"The moment these bonds come off the proverbial lot, so to speak, I think they are worth less than what you paid for them because you may be the only sucker out there who is willing to buy the stuff," Cramer said. (Tweet This)
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There is a massive amount of debt relating to coal, but Cramer thinks coal is done in the U.S. Additionally, any investment in metals, mining or steel related bonds is really just a gamble that the Chinese economy will come roaring back, soon, and Cramer does not see that happening.
As for oil and gas, right now there is more natural gas than anyone can actually use and the balance sheets for many of these companies are under stress.
In Cramer's perspective, the same pundits who are chattering about junk bonds being cheap are the same ones who thought emerging market debt was cheap.
"All I can say is that these people who claim it is cheap tend to have one thing in common — they have some junk to sell you," Cramer said. (Tweet This)
Ultimately, Cramer warned investors to beware of the debt merchants that bear gifts. Those are also the same companies that will not want to show the true prices of their junk paper at the end of the year.