junk bond

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Related to High-yield debt: Junk bonds

junk bond,

a bondbond,
in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years.
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 that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. Junk bonds became a common means for raising business capital in the 1980s, when they were used to help finance the purchase of companies, especially by leveraged buyoutsleveraged buyout,
the takeover of a company, financed by borrowed funds. Often, the target company's assets are used as security for the loans acquired to finance the purchase.
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; the sale of junk bonds continued to be used in the 1990s to generate capital. See also Milken, MichaelMilken, Michael Robert
, 1946–, American financial executive, b. Van Nuys, Calif. Nicknamed the "junk bond king," he was an executive at Drexel Burnham Lambert, Inc., where he transformed corporate takeovers and financing by the use of high-yield junk bonds.
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References in periodicals archive ?
Whether you're contemplating an acquisition or LBO, or simply trying to optimize your balance sheet, several factors will help you determine whether high-yield debt is right for you.
The writeoff of the interest receivable on defaulted high-yield debt securities in accordance with Financial Accounting Standards Board Statement no.
Proskauer's Corporate Finance Group works with domestic and international businesses and institutions on a range of matters including initial public offerings, follow-on offerings, investment-grade, convertible and high-yield debt offerings, real estate securities transactions, and regulatory issues.
is a financial boutique specializing in the intermediation of high-yield debt securities and other financial instruments.
Published weekly, IFR Asia provides in-depth coverage of developments in the region's financing markets, including analysis of all international bond, syndicated loan, leveraged finance, high-yield debt, emerging market, equity and convertible issues.
Nicholas-Applegate Convertible & Income Fund II (NYSE:NCZ) is a closed-end management investment company, which invests principally in convertible securities and high-yield debt.
Some of the greatest inefficiencies in the credit markets exist in companies that have difficulty in issuing high-yield debt.
corporate debt obligations and other corporate income-producing securities, specifically high-yield debt.
As a leading trustee in the high-yield debt market, The Bank of New York easily met and exceeded these requirements.
The fund is a closed-end management investment company that invests primarily in a portfolio of mortgage-backed securities, bank loans, and high-yield debt.