junk bond
noun [ C ]
FINANCE, STOCK MARKET ukusa 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