junk bond

Definition of "junk bond"
  1. A type of bond that comes with a credit rating of 'BB' (Standard & Poor's) or 'Ba' (Moody's)
How to use "junk bond" in a sentence
  1. The company issued a junk bond to raise capital despite its lower credit rating.
  2. Investors may opt for junk bonds to leverage higher returns in comparison to traditional bonds.
  3. Due to financial instability, their stock quickly became a junk bond.

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