by Spud31 June 22, 2011
(FINANCE) originally, a bond rated as not investment grade by a credit rating agency (e.g., Standard & Poor, Ernst & Young, or Moody's).
Later, a bond was a financial instrument deliberately created to have absurdly high levels of risk (of default), which was then priced in and "hedged" by a fund manager. Junk bonds are routinely used to finance leveraged buyouts.
Later, a bond was a financial instrument deliberately created to have absurdly high levels of risk (of default), which was then priced in and "hedged" by a fund manager. Junk bonds are routinely used to finance leveraged buyouts.
Michael Milken was the junk bond innovator who figured out how to make them an effective investment vehicle. Yes, he later went to jail for securities law violations.
by Abu Yahya September 1, 2010
Example one:
Mike: Why are you talking to that guy?
John: Oh I'm junk bonding so that I can get us those football tickets.
Example two:
Howard: I have never understood why you talk to that woman.
Pete: I'm junk bonding with her cause I'm in a dark place and I need to see this through.
Mike: Why are you talking to that guy?
John: Oh I'm junk bonding so that I can get us those football tickets.
Example two:
Howard: I have never understood why you talk to that woman.
Pete: I'm junk bonding with her cause I'm in a dark place and I need to see this through.
by Wholeeyo October 26, 2022