junk bond

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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 ?
Samsung SRA, the real estate asset management subsidiary of Samsung Life Insurance, launched the fund to provide Korean institutional investors access to mezzanine debt on stable core office assets in six US central business districts -- New York, Boston, Chicago, San Francisco, Washington, DC and Los Angeles.
Country: , CanadaSector: Banking/Financial ServicesTarget: Canadian private equity fund management and mezzanine debt unitBuyer: Fulcrum Capital Partners IncVendor: HSBC Holdings plcType: DivestmentStatus: Agreed
More specifically, mezzanine debt is currently a strategy that we believe investors should be considering as part of their future alternative or opportunistic fixed income portfolios.
Under such circumstances, investing in commercial real estate mezzanine debt can produce equity-like returns with significant downside protection.
a mezzanine debt lender, says mezzanine debt and second-lien loans can compete with each on the balance sheet--but he believes mezzanine is superior for lenders.
provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions.
After completion of the financing, SL Green sold one half of its interest in the junior mezzanine debt.
Private equity firm Electra Private Equity plc (LSE:ELTA) said today that its second lien and mezzanine debt has been repaid as a result of the sale of Volution ("Vent-Axia").
The financing is comprised of $30,720,000 in senior debt and $1,920,000 in mezzanine debt.
The company is one of the nation's leading HUD 232 FHA / MAP-approved lenders and also has an integrated debt / equity financing strategy that includes direct property acquisitions and joint ventures; sale / lease-backs for clients; conventional and mezzanine debt financing; and acquisition of distressed debt.
NASDAQ: TPGI), a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use and residential properties on a nationwide basis, announced today that the Company, through its joint venture with the California State Teachers' Retirement System (TPG/CalSTRS), has negotiated the repayment and restructuring of mezzanine debt on Centerpointe I and II (Centerpointe), a two-building complex comprising 422,000 square feet located in Fairfax County, Virginia.
They also noted that mortgage bankers are increasingly required to bring first mortgage debt, mezzanine debt and equity to the table to win business.