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junk bond
A bond with a speculative credit rating of BB ( S&P) or BA (Moody's) or lower. Junk or high-yield bonds offer investors higher yields than bonds of financially sound companies. Two agencies, Standard & Poor's and Moody's Investor Services, provide the rating systems for companies' credit. Bloomberg Financial Dictionary
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Also known as a high yielding bond. Any bond which is not of investment grade. Dresdner Kleinwort Wasserstein financial glossary
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Bonds that are considered to be very risky.

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junk bond junk bond bond

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junk bond UK US 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.

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Many utility companies have seen their credit rating downgraded to junk bond status.

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a junk bond dealer/investor/financier

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junk bond funds/portfolios/holdings


Financial and business terms. 2012.