Definitions for junk bond

This page provides all possible meanings and translations of the word junk bond

Random House Webster's College Dictionary

junk′ bond`(n.)

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

    Category: Business

Origin of junk bond:

1975–80

Princeton's WordNet

  1. 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

Wiktionary

  1. junk bond(Noun)

    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.

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