junk bond

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

Origin:
1975–80

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Collins
World English Dictionary
junk bond
 
n
finance a security that offers a high yield but often involves a high risk of default

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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00:10
Junk bond is always a great word to know.
So is bezoar. Does it mean:
a calculus or concretion found in the stomach or intestines of certain animals, esp. ruminants, formerly reputed to be an effective remedy for poison.
the offspring of a zebra and a donkey.
Slang Dictionary

junk bond definition


  1. n.
    a low-rated corporate bond that pays higher interest because of greater risk. (Parallel to junk food.) : Don't put all your money into junk bonds.
Dictionary of American Slang and Colloquial Expressions by Richard A. Spears.Fourth Edition.
Copyright 2007. Published by McGraw Hill.
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Example sentences
Exercise caution when considering investing in funds with junk bond portfolios.
Credit crisis sends businesses into junk bond limbo.
Junk bond mergers and acquisitions left many workers worse off as they made a
  few well connected executives enormously wealthy.
Until creditors are paid the company remains at junk bond status.
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