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

Within fixed income, investors can get 3% to 5% yields on municipals, 6% to 10% on junk bonds, 10%-plus on private credit loans held by business development companies, 6% yields on preferred stock, 5% yields on mortgage securities, and 3.5% to nearly 5% yields on Treasuries.

From Barron's

The gap for junk bonds is less than three points.

From Barron's

The $1 trillion of loans to private junk-grade companies often carry 10%-plus yields at a time when many public junk bonds yield just 7%.

From Barron's

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