junk bond

noun

, Finance.

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

junk bond

noun

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

Word History and Origins

Origin of junk bond¹

First recorded in 1975–80

Example Sentences

Over the past decades, various types of businesses have rotated in and out of favor—conglomerates in the ’60s, junk bonds in the ’80s, tech in the ’00s—but the basic workplace structure, of office cubicles and face time, has remained the same.

From Time

I am not the most financially literate person (I would be hard-pressed to articulate the term “junk bond”).

From The Daily Beast

It seems that Gekko, poster child of the junk bond era, is officially a dinosaur.

From The Daily Beast

At least Milken was the junk-bond king when he got his $550 million pay package in 1987.

From The Daily Beast