- Junk bond
- A bond with a speculative credit rating of BB ( S&P) or Ba (Moody's) or lower is a junk or high yield bond. Such bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poors and Moody's investor Services, provide the rating systems for companies' credit. The New York Times Financial Glossary
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junk bond UK US noun [C] FINANCE, STOCK MARKET► a bond that has a high risk that it will not be paid back, but that may possibly make a large profit: »If companies issuing junk bonds default on payments, bondholders have little legal recourse to get their investment back.
»Many utility companies have seen their credit rating downgraded to junk bond status.
»a junk bond dealer/investor/financier
»junk bond funds/portfolios/holdings
Financial and business terms. 2012.