| The Columbia Encyclopedia, Sixth Edition. 2001-07. |
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| junk bond |
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| a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. Junk bonds became a common means for raising business capital in the 1980s, when they were used to help finance the purchase of companies, especially by leveraged buyouts; the sale of junk bonds continued to be used in the 1990s to generate capital. See also Milken, Michael. |
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| | | The Columbia Encyclopedia, Sixth Edition. Copyright © 2007 Columbia University Press. |
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