junk bond

noun [C] FINANCE, STOCK MARKET

Definition

› 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)