junk bond

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Related to Junk bonds: High yield 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 ?
Milken's junk bonds. It reminds me a lot of advertising.
The fund's collapse triggered deep losses in the junk bond category and left fund shareholders unable to redeem money.
The international rating agency, noting that the Indian bond covenants are strong, said the recent junk bond sales by Indiabulls Real Estate's USD 175 million (B1 stable), Delhi International Airport's USD 288 million (Ba1 stable), Lodha Developers' USD 200 million (Ba3 stable) and Reliance Communications' USD 300 million (Ba3 stable) provide stronger protection for investors than bonds issued by other rated high-yield companies globally.
Junk bond issuance in the fourth quarter fell to $13 billion from $30 billion in the third quarter and around $18 billion in the fourth quarter of last year, making it the weakest quarterly performance since 2011, said Firth.
Today, interest rates on junk bonds are more or less in line with interest rates in the money market, i.e.
To put bond yields in perspective, traders typically look at the difference in yield between junk bonds and comparable Treasury securities.
Some market observers are already talking about the risk of a bubble, especially in junk bonds and some emerging markets.
Financial commentators claim this classifies the credit worthiness of the mighty Newcastle alongside that of junk bonds. In other words, rubbish.
RED-COAT blazered, button-down collars, Hear them shout across the floor, Electronically liquefying petro-dollars, Hyping junk bonds evermore.
Quebecor, which could not be reached immediately, likely was scared off of the bond offering after Tuesday's big sell-off of junk bonds following the ratings downgrade of many bonds backed by subprime mortgages.
Examples of entries: Ponzi Scheme, Enron, Exxon Valdez, identity theft, the cruise line industry, OSHA, Michael Milken, junk bonds, insider trading, Jimmy Swaggart, Lee Iacocca, and price fixing.
As an example, the trustee in Zabel could have invested the trust assets in junk bonds to increase income.