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.
Using debt to cover operating costs would likely trigger a credit downgrade, dropping CPS even further into junk bond territory. Joe Ferguson, Chicago Tribune, 12 Aug. 2025 In credit, CCCs, the riskiest tier of the junk bond universe, are on track to rack up a seventh week of gains. Shawn Tully, Fortune, 26 July 2025 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 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 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 9 Sep. 2025.

Legal Definition

junk bond

see bond sense 2

More from Merriam-Webster on junk bond

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