junk bond

English

Noun

junk bond (plural junk bonds)

(finance) A bond (an instrument of debt) which is considered below "investment grade" due to a significant risk of default by the issuer. The interest rate is higher in order to compensate holders for that risk.

Translations

a bond which is considered below investment grade

French: obligation pourrie (fr) f
German: hochverzinsliche Anleihe f, risikoreiche Anleihe f, Schrottanleihe f, Ramschanleihe f

Italian: titolo spazzatura m

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