junk financing

junk financing definition - business

junk financing

The raising of funds by issuing unsecured high-yield securities, as, for example, during takeover attempts in which the acquiring firm has little cash and must issue unsecured debt to finance the acquisition. Also called high-yield financing.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.