junk bond Definition In English

• 0 a bond that has a high risk that it will not be paid back, but that may possibly make a large profit:

  • junk bond funds/portfolios/holdings

  • a junk bond dealer/investor/financier

  • Many utility companies have seen their credit rating downgraded to junk bond status.

  • If companies issuing junk bonds default on payments, bondholders have little legal recourse to get their investment back.