Share this entry
junk bond Line breaks: junk bond

Definition of junk bond in English:


A high-yielding high-risk security, typically issued by a company seeking to raise capital quickly in order to finance a takeover.
Example sentences
  • Yet the growth of hostile takeovers, junk bond finance, and corporate raiding tilted the balance of power over the course of the decade away from managers towards shareholders.
  • With the average junk bond yielding 12.92%, or 7.6 percentage points more than Treasuries, Simon says the sector offers a good risk-reward tradeoff.
  • In the midst of a global equity rout, the junk bond and U.S. corporate bond market remains wide open for business.
Definition of junk bond in:
Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.

Subscribe to remove adverts and access premium resources