junk bond
nounDefinition of junk bond
: a high-risk bond that offers a high yield
Examples of junk bond in a Sentence
Recent Examples on the Web
Ford in 2012 was upgraded to investment grade, which is what a credit rating is called when it is not considered a junk bond. — Chris Isidore, CNN, "Ford debt has been downgraded to junk," 10 Sep. 2019 In Europe, amazingly, the junk bonds of more than a dozen large companies now have negative yields. — Robert Pozen, Fortune, "Why the Fed Lowering Interest Rates Would Be a Mistake," 29 July 2019 Often called junk bonds, companies with low credit ratings issue high-yield bonds for access to capital, although at a higher interest rate than companies with good credit. — Erik Sherman, Fortune, "The Party’s Almost Over, Say High-Yield Bond Investors," 15 July 2019 In fact, if the ECB does cut rates, more junk bond yields might turn negative, or go even further negative, in which case the bond buyers can earn a profit. — Allison Schrager, Quartz, "Yields are so low that even junk bonds now have negative rates," 18 July 2019 Sixty-percent of Nasdaq constituents have junk bond rated debt. — Bob Sellers, Fortune, "Will the Fed Cut Interest Rates to Prevent Recession? 6 Predictions," 11 July 2019 From its low in March 2005 to the post-downgrade peak U.S. junk bond yields jumped from 2.7 to 4.6 percentage points above Treasury yields, according to the ICE BAML index. — James Mackintosh, WSJ, "If GE Debt Gets Junked, Markets Have Reason to Shudder," 20 Nov. 2018 Standard & Poor’s gave the school a BB+ rating after the district gave it a three-year contract in 2014, putting it at the better end of speculative bonds — what some people call junk bonds. — Meg Wingerter, The Denver Post, "STEM School, Douglas County district reach five-year agreement, with conditions," 29 June 2019 These junk bonds tend to pay much higher yields than government bonds, but they are called junk for a reason. — Paul R. La Monica, CNN, "How low can bond yields go?," 25 June 2019These 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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