any corporate bond with a low rating and a high yield, often involving high risk.
Origin
1975-80
British Dictionary definitions for junk bonds
junk bond
noun
1.
(finance) a security that offers a high yield but often involves a high risk of default
junk bonds in Culture
junk bonds definition
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.
Slang definitions & phrases for junk bonds
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+)