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What does Junk Bond mean?

A high-yield, high-risk debt instrument issued by companies with lower credit ratings, offering higher returns to compensate for the increased risk of default.

Junk Bond in a sentence
A junk bond offers a higher yield to compensate for its higher risk of default.

Junk Bond in German, French, Spanish and Italian

German
Ramschanleihe
also Hochzinsanleihe

Hochrisiko-Anleihen, die oft von Unternehmen in finanzieller Not ausgegeben werden.

French
Obligation à haut risque
also obligation de pacotille

Titres de créance à haut risque mais à rendement élevé.

Spanish
Bono basura

Bonos con baja calificación crediticia y alto riesgo de impago.

Italian
Titolo spazzatura

Titoli obbligazionari con elevato rischio di insolvenza.

Common phrases with Junk Bond

  • issue junk bond
  • invest in junk bond
  • default on junk bond

Synonyms and opposites for Junk Bond

  • Synonym High-yield Bond
  • Synonym Speculative-grade Bond
  • Opposite Investment-grade Bond

More Economics terms

All economics terms →

Junk Bond is filed under