junk bonds

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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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
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American Heritage
Cultural Dictionary

junk bonds definition


Technically known as bonds of “less than investment grade,” they are short-term, high-yield bonds. They were widely used in the 1980s to finance mergers, especially hostile ones.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
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