junk bond


Definition of junk bond

: a high-risk bond that offers a high yield

Examples of junk bond in a Sentence

Recent Examples on the Web Illinois has the worst credit rating in the U.S. at just one notch above junk bond status, and the state's five public pension systems are the worst funded in the nation. Greg Bishop, Washington Examiner, "Welch, Illinois' first Black Speaker of the House, praises Madigan's tenure," 14 Jan. 2021 Asia’s junk bond market has been on a tear and if recent history is any guide could be set for a very busy return after year-end holidays. Finbarr Flynn, Bloomberg.com, "Asia’s Hot Junk Bond Market May See a Surge in Sales Next Month," 21 Dec. 2020 American Bath priced a $335 million junk bond sale to help fund its buyout by Centerbridge Partners. Molly Smith, Bloomberg.com, "Carnival Borrowing Without Ships Suggests Mnuchin May Be Right," 20 Nov. 2020 Consider the case of China Evergrande Group, the country’s most indebted property developer and the largest junk bond issuer in Asia’s dollar bond market. Serena Ng, WSJ, "More Corporate Bonds Are Rated Triple-A in China Despite Coronavirus Pandemic," 21 Oct. 2020 The federal agency that helped convict high-flying junk bond king Michael Milken of securities fraud and charge lifestyle entrepreneur Martha Stewart with insider trading has turned its investigative focus to FirstEnergy Corp. Sabrina Eaton, cleveland, "FirstEnergy now under SEC scrutiny: What does that mean?," 17 Sep. 2020 The platform was built by virtual charter school company K12, backed by one-time junk bond king Michael Milken and US secretary of education Betsy DeVos. Sandra Upson, Wired, "How an Epic Series of Tech Errors Hobbled Miami’s Schools," 16 Sep. 2020 The bad news is that Fitch still expects the US junk bond default rate to climb to as high as 8% in 2021, compared with just 2.4% in 2018. Matt Egan, CNN, "Bankruptcy filings are mounting. And that's just the tip of the iceberg," 11 Sep. 2020 Don’t know the difference between a municipal bond and a junk bond? Adam Shell, USA TODAY, "What are ETF stocks and why you should consider them for your portfolio," 24 Aug. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'junk bond.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of junk bond

1974, in the meaning defined above

Keep scrolling for more

Learn More about junk bond

Time Traveler for junk bond

Time Traveler

The first known use of junk bond was in 1974

See more words from the same year

Statistics for junk bond

Last Updated

30 Jan 2021

Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 4 Mar. 2021.

Style: MLA
MLA Chicago APA Merriam-Webster

Keep scrolling for more

More Definitions for junk bond

junk bond


English Language Learners Definition of junk bond

business : a type of bond that pays high interest but also has a high risk

junk bond

Legal Definition of junk bond

— see bond sense 2

More from Merriam-Webster on junk bond

Britannica.com: Encyclopedia article about junk bond

Comments on junk bond

What made you want to look up junk bond? Please tell us where you read or heard it (including the quote, if possible).


Test Your Vocabulary

Who Knew?

How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!


Anagram puzzles meet word search.

Love words? Need even more definitions?

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