junk bond

noun

: a high-risk bond that offers a high yield

Examples of junk bond in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In December, Oracle’s investment-grade notes were trading like junk bonds, because investors feared data centers would be delayed, according to Bloomberg. Elizabeth Lopatto, The Verge, 29 Apr. 2026 Shapoorji Pallonji Group, India’s biggest private credit borrower and issuer of one of its largest-ever junk bonds, has just reinforced that point. Dipika Lalwani, Bloomberg, 24 Apr. 2026 By lining up Nvidia to lease an unbuilt data center in Nevada, an entity backed by Tract Capital was able to borrow $3.8 billion from the junk bond market despite the fact that the entity has no revenue. Bloomberg, Mercury News, 31 Mar. 2026 In 1990, Drexel Burnham Lambert, Wall Street's leading issuer of junk bonds, filed for bankruptcy. Gustaf Lundberg Toresson, Forbes.com, 11 Mar. 2026 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

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Cite this Entry

“Junk bond.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/junk%20bond. Accessed 5 May. 2026.

Legal Definition

junk bond

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