Definition of junk bond in English:

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junk bond

noun

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.

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