junk bonds

Cultural

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

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Yet junk bonds might prove more resilient than their loan peers in the speculative credit market in rocky times ahead.

From The Wall Street Journal • Apr. 6, 2026

Bond funds are clamoring for the deal because it delivers high returns, or yields, typical of junk bonds but with protections associated with investment-grade credit ratings.

From The Wall Street Journal • Nov. 17, 2025

The move could kick off a trend of data centers funded by junk bonds — debt issued by companies too financially shaky to be rated investment-grade by the ratings agencies.

From MarketWatch • Nov. 8, 2025

Yet the high-yield bond market, home to junk bonds rated below investment grade, has been surprisingly resilient.

From Barron's • Oct. 23, 2025

Launched in 2014, its mandate calls for investing 80% in investment-grade bonds, and up to 20% in junk bonds.

From Barron's • Oct. 11, 2025

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023