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 One beneficiary of the flagging demand for investment-grade bonds could be the junk bond-market, which tends to follow stocks more than Treasurys. Matt Wirz, WSJ, "Investor Appetite Dwindles for Blue-Chip Bond Funds Amid Losses," 7 Apr. 2021 Now, with junk bond yields still hovering around 4.5%—below their pre-pandemic record lows—investors are turning to leveraged loans because their interest payments increase with short-term rates. Sebastian Pellejero, WSJ, "Junk-Loan Rally Cuts Company Borrowing Costs," 15 Mar. 2021 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

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.

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First Known Use of junk bond

1974, in the meaning defined above

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Time Traveler for junk bond

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The first known use of junk bond was in 1974

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Statistics for junk bond

Last Updated

12 Apr 2021

Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 17 Apr. 2021.

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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

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