junk bond

noun Finance.

any corporate bond with a low rating and a high yield, often involving high risk.

Origin of junk bond

First recorded in 1975–80

Words nearby junk bond

juniper oil, juniper tar, junius, junk, junk art, junk bond, junk bonds, junk call, junk dna, junk food, junk jewelry

British Dictionary definitions for junk bonds

junk bond

noun

finance a security that offers a high yield but often involves a high risk of default

Cultural definitions for junk bonds

junk bonds

Technically known as bonds of “less than investment grade,” they are short-term, high-yield bonds. They were widely used in the 1980s to finance mergers, especially hostile ones.