junk bond

noun

: a high-risk bond that offers a high yield

Examples of junk bond in a Sentence

Recent Examples on the Web
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Standard & Poor’s, which is on the verge of downgrading Boeing’s credit rating to junk bond status for the first time in the company’s history, estimates that the strike is costing Boeing an additional $1 billion a month, on top of its existing rate of losses. Chris Isidore, CNN, 23 Oct. 2024 Boeing’s credit rating is at risk of being downgraded to junk bond status, which would create more financial problems by raising its cost of borrowing. Chris Isidore, CNN, 16 Oct. 2024 Finally, a word on junk bonds and the risk of defaults, which is overblown. Michael Foster, Forbes, 8 Oct. 2024 In turn, Boeing’s investment-grade credit rating is hanging on by a thread, and if the strike chews up enough revenue, the planemaker could slip into junk bond status — and far more expensive borrowing costs. Melvin Backman, Quartz, 18 Sep. 2024 See all Example Sentences for junk bond 

Word History

First Known Use

1974, in the meaning defined above

Time Traveler
The first known use of junk bond was in 1974

Dictionary Entries Near junk bond

Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 28 Nov. 2024.

Legal Definition

junk bond

see bond sense 2

More from Merriam-Webster on junk bond

Last Updated: - Updated example sentences
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