This page provides all possible meanings and translations of the word junk bond
Princeton's WordNetRate this definition:(0.00 / 0 votes)
junk bond, high-yield bond(noun)
a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
WiktionaryRate this definition:(0.00 / 0 votes)
A bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk.