VariousWords beta
Related Terms:
Definitions:
Noun
junk bond
high-yield bond
Definition: a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit
Definition: A bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk.