How's buying corporate junk bonds buying equities by proxy?

Question

Is this r/wallstreetbets comment correct? If so, please expound?

Buying corporate junk bonds is by proxy buying equities. Before someone goes on a tangent, this is cause and effect.

Answer 1

High-yield debt tends to move in-line with the stock market but can still have smaller moves than the stock market.

Or in a re-organization the stockholders are often wiped-out with the bondholders becoming the new stockholders. But the bondholders can hedge their bonds by shorting the stock.

And the bondholders are likely to hedge the bonds, instead of selling, because the bonds are not as liquid as the stock.

Finally, the bonds have specific covenants that the company must meet.

So on each point the investors can decide for themselves whether they want the bonds or the stock.