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

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