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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junk bonds

That’s important because while selling junk bonds with below-investment-grade ratings typically ends up being more expensive, the investment-grade market offers less flexibility in terms of retiring the debt early.

From MarketWatch ● Sep. 30, 2026

U.S. junk bonds are getting badly bruised in September, with their high yields so far failing to provide enough cushion this month to withstand heightened market volatility without losses.

From The Wall Street Journal ● Sep. 30, 2026

Both junk-bond ETFs ended Monday clinging to slight 2026 gains on a total return basis, partly due to the higher compensation investors get for taking more risk in junk bonds.

From MarketWatch ● Sep. 29, 2026

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