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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Private credit is the new kid in the high-yield sector and its boosters had been highlighting the better performance relative to plain corporate junk bonds in recent years.

From Barron's • Jun. 26, 2026

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

The gap for junk bonds is less than three points.

From Barron's • Jan. 2, 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

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