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.

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Example Sentences

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

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

These investments generally entail floating junk bonds, a business pioneered by Drexel Burnham in the 1980s.

From Barron's

And as the Fed keeps cutting interest rates, there will likely be an even stronger bid for junk bonds from investors seeking higher yields than cash can offer.

From Barron's

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

From Barron's