junk bond

noun

: a high-risk bond that offers a high yield

Examples of junk bond in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
High yield corporate bonds, often called junk bonds, are issued by companies with weaker credit ratings that are theoretically more at risk of suffering losses in bankruptcy. Jesse Pound, CNBC, 17 June 2025 Bondholders, meanwhile, have soured on debt the company raised just six months ago, trading some of the $2.2 billion in junk bonds used to fund the Neiman’s acquisition down to as low as 38 cents on the dollar. Evan Clark, Footwear News, 28 May 2025 The Wall Street analyst also addressed WBD recently being downgraded to BB+, or junk bond status, for 2025 and 2026 by S&P Global over linear TV weakness as the Hollywood studio continues to pivot to the streaming space. Etan Vlessing, HollywoodReporter, 2 June 2025 Warner Bros Discovery unveiled David Zaslav’s $52 million payday the month before the company was cut to junk bond status (more on that below). Jill Goldsmith, Deadline, 21 May 2025 See All Example Sentences for junk bond

Word History

First Known Use

1974, in the meaning defined above

Time Traveler
The first known use of junk bond was in 1974

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Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 28 Jun. 2025.

Legal Definition

junk bond

see bond sense 2

More from Merriam-Webster on junk bond

Last Updated: - Updated example sentences
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