junk bond

American  

noun

Finance.

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

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junk bond British  

noun

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

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Etymology

Origin of junk bond

First recorded in 1975–80

Example Sentences

The telecommunications company had spent some $15 billion building fiber-optic networks in 27 countries since it was launched by former Drexel Burnham junk bond trader Gary Winnick in 1997.

From The Wall Street Journal • Jan. 28, 2026

The debacles “may have repercussions on the financial system more broadly,” warns junk bond guru Marty Fridson, chief executive officer of FridsonVision High Yield Strategy.

From Barron's • Oct. 23, 2025

A few days later, Moody’s rating service downgraded the debt of the national oil company, Petroleos Mexicanos, or Pemex, even further into junk bond status.

From Seattle Times • Feb. 15, 2024

He later moved to the West Coast, where Milken set up his junk bond shop in Beverly Hills in 1978.

From Los Angeles Times • Nov. 7, 2023

His clients included Ivan Boesky, who pleaded guilty to insider trading during the junk bond scandal of the late 1980s, and scores of financial firms.

From New York Times • Jun. 2, 2023