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 ?
By historic standards, high-yield debt continues to offer a decent pick-up in yield when compared to Government debt of the some maturity.
93-1, Financial Accounting and Reporting for High-Yield Debt Securities by Investment Companies, provides guidance on interest income recognition for certain types of these securities and two accounting issues relating to defaulted debt securities (capital infusions and workout expenses paid by bondholders).
Blumenstein specializes in high-yield debt financings and is widely considered one of the leading advisors to both issuers and underwriters in the market.
CMFS specializes in the intermediation of high-yield debt securities and other financial instruments.
His transactional experience includes cross-border high-yield debt offerings, tender offerings, secondary offers, stock buy-backs, mergers and acquisitions and private placements in the U.
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.