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English definition of “junk bond”

junk bond

noun [C]     FINANCE, STOCK MARKET
a bond that has a high risk that it will not be paid back, but that may possibly make a large profit: If companies issuing junk bonds default on payments, bondholders have little legal recourse to get their investment back. Many utility companies have seen their credit rating downgraded to junk bond status. a junk bond dealer/investor/financier junk bond funds/portfolios/holdings
(Definition of junk bond noun from the Cambridge Business English Dictionary © Cambridge University Press)
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