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Bonds

Junk Bond

Alias for high-yield bond — see also: junk-bonds entry.

In depth

Bonds rated below investment grade (BB+/Ba1 and below). Higher yields compensate for higher default risk. Spreads to Treasuries are a key gauge of risk appetite — widening high-yield spreads often precede equity selloffs.

Frequently asked about Junk Bond

What is Junk Bond?

Alias for high-yield bond — see also: junk-bonds entry. Bonds rated below investment grade (BB+/Ba1 and below). Higher yields compensate for higher default risk. Spreads to Treasuries are a key gauge of risk appetite — widening high-yield spreads often precede equity selloffs.

Why does Junk Bond matter for investors?

In bonds, Junk Bond is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Junk Bond used in practice?

Bonds rated below investment grade (BB+/Ba1 and below). Higher yields compensate for higher default risk.

Recent news mentioning Junk Bond

First Eagle Sells $575M Junk Bonds to Finance Diamond Hill Acquisition

The Quick Take * Genstar Capital-backed First Eagle Investments is raising $575M via junk bonds to acquire Diamond Hill Investment Group * No market price reaction data available; deal represents a significant leveraged acquisition in the asset-management sector * No analyst commentary reported; the use of high-yield debt signals confidence in combined firm's cash-flow generation * Completion of the bond sale will determine deal closure timeline; credit market appetite for the offering is k

May 6, 2026

Related terms

Junk Bonds (High Yield)

Bonds rated below investment grade, offering higher yields to compensate for higher default risk.

Credit Spread

The yield difference between a corporate or sovereign bond and a comparable Treasury.

Credit Rating

An assessment of a borrower's creditworthiness by rating agencies.

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