junk bond

noun

A bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk.

Similar
high-yield bond
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Meanings

nounjunk bond (plural junk bonds)

plural junk bonds

  1. businessA bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk.

Synonyms & antonyms

nouna (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit

Similar
high-yield bond
Broader
bondbond certificate

Synonym sets from Open English WordNet, CC BY 4.0.

Translations

Catalan bo porqueria
  • bo porqueriaa bond which is considered below investment grade
Chinese Mandarin 垃圾債券 /垃圾债券
  • 垃圾債券 /垃圾债券 (lājī zhàiquàn)a bond which is considered below investment grade
French obligation pourrie
  • obligation pourriea bond which is considered below investment grade
German hochverzinsliche Anleihe, risikoreiche Anleihe
  • hochverzinsliche Anleihea bond which is considered below investment grade
  • risikoreiche Anleihea bond which is considered below investment grade
  • Schrottanleihea bond which is considered below investment grade
  • Ramschanleihea bond which is considered below investment grade
Italian titolo spazzatura
  • titolo spazzaturaa bond which is considered below investment grade
Swedish skräpobligation
  • skräpobligationa bond which is considered below investment grade
Cite this entry
APA

junk bond. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/junk%20bond

MLA

“junk bond.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/junk%20bond. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “junk bond,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/junk%20bond.

Source: junk bond on Wiktionary, CC BY-SA 4.0.