What is another word for junk bond?
Pronunciation: [d͡ʒˈʌŋk bˈɒnd] (IPA) 
Junk Bond, also known as non-investment grade bond, is a high-risk, high-yield debt instrument issued by companies with poor credit quality. Due to their high default probability, junk bonds offer higher interest rates and promise returns to investors who take on the additional risk. Other synonyms for Junk Bond include Non-grade bond, Speculative bond, High yield bond, or a High-risk bond. These terms highlight the bond's risky profile and underscore the investor's willingness to accept higher risks in return for potential gains. Junk bond investors must be prepared to face the possibility of default, but if successful, they can benefit from the higher yield.
