junk bond Hear it!

junk bond Definition

junk bond

noun

Informal a high-yield, speculative bond (), often issued to finance the takeover of a corporation

junk bond Finance Definition
Bonds that have a credit rating of BB or below. Bonds that have a junk rating are often issued by companies or municipalities that have a bad or uncertain credit rating. Also called high-yield, high-risk, or below-investment grade bonds.
junk bond Usage Examples

Modifies a noun

  • status: Korean state and corporate bonds reduced to junk bond status.