any corporate bond with a low rating and a high yield, often involving high risk.
Origin
1975-80
Examples from the web for junk bond
Credit crisis sends businesses into junk bond limbo.
It will also be good for the junk bond market as people scramble to find yield in an attempt to make ends meet.
junk bond mergers and acquisitions left many workers worse off as they made a few well connected executives enormously wealthy.
Exercise caution when considering investing in funds with junk bond portfolios.
Until creditors are paid the company remains at junk bond status.
British Dictionary definitions for junk bond
junk bond
noun
1.
(finance) a security that offers a high yield but often involves a high risk of default
Slang definitions & phrases for junk bond
junk bond
noun phrase
A bond having high yield but relatively little security, used as a payment for one company by another in a corporate merger: Fed adopts ''Junk Bond'' curbs(mid-1970s+)