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.
City council members had an assortment of questions about the sale of the artwork, the university’s junk bond status by Moody’s, and whether the university had a backup plan if the council voted against pitching in with the bond issue. Amy Lavalley, Chicago Tribune, 13 May 2025 She’s positioned cautiously right now because spreads — which measure junk bonds’ excess return over risk-free Treasurys — are tight. Michelle Fox, CNBC, 31 Mar. 2025 While the spreads on high-quality investment-grade corporate debt and high-yield junk bonds are above recent lows, the increase is insufficient to trigger substantial fear of any impending economic downturn. Bill Stone, Forbes, 9 Mar. 2025 The Rales brothers’ rapid takeover strategy initially relied on Michael Milken’s infamous junk bonds. Rebecca Keegan, The Hollywood Reporter, 27 Feb. 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

Browse Nearby Words

Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 22 May. 2025.

Legal Definition

junk bond

see bond sense 2

More from Merriam-Webster on junk bond

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!