junk bonds


noun Finance.

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

noun

  1. finance a security that offers a high yield but often involves a high risk of default

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

54 queries 1.669