We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


See high yield bond. A junk bond comes from a company that has a bad rating from Moody's or another rating agency. The idea is that you might lose your money because the company that issued the bond has lousy credit. On the plus side, junk bonds are usually cheap. You get what you pay for.

Find other enlightening terms in Shmoop Finance Genius Bar(f)