junk bonds

Cultural  

1. 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.

---

Example Sentences

See Examples For:

junk bonds

Speculative grade or junk bonds are riskier, although the higher yields are enticing.

From The Wall Street Journal ● Oct. 8, 2026

Both junk-bond ETFs ended Monday clinging to slight 2026 gains on a total return basis, partly due to the higher compensation investors get for taking more risk in junk bonds.

From MarketWatch ● Sep. 29, 2026

If you’re retiring in the next five, I wouldn’t buy junk bonds or emerging-market debt.

From MarketWatch ● Sep. 29, 2026

The fund has 27% of its assets in bank loans and related holdings, 23% in junk bonds and 9% in mortgages not backed by a U.S. agency.

From The Wall Street Journal ● Sep. 25, 2026

Treasuries now yield 4% to almost 5%; investment-grade corporate bonds, 5% to 6%; mortgage securities, 5.5%; junk bonds, 7% or more; preferred stock, 6%; and municipal bonds, 2% to 4%.

From Barron's ● Jun. 26, 2026

Random Word

Spin the wheel and learn a new word!

---