junk bond
noun[C]
FINANCE,STOCK MARKETukusabondthat has a highriskthat it will not bepaidback, but that maypossiblymake alargeprofit:
Ifcompaniesissuingjunkbondsdefaultonpayments,bondholdershave littlelegalrecourseto gettheirinvestmentback.
Manyutilitycompanieshaveseentheircreditratingdowngradedtojunkbondstatus.
ajunkbonddealer/investor/financier
junkbondfunds/portfolios/holdings