Junk bond default rate to triple within 12 months, S&P says ... Renault shares fall after Moody's cuts company to "junk" status.
A bond that has a high risk of the underlying company defaulting is called a junk bond.


Companies that issue junk bonds are typically start-ups or companies that are struggling financially. After that, all bonds were investment grade until the 1970s, except for those that had become “fallen angels.” Any company that was speculative had to get loans from banks or private investors. Bonds from companies such as Delta Air Lines … Ratings firm’s ‘bottom 10’ junk bonds include J.C. Penney and U.S. Steel - MarketWatch The list also includes Revlon and Rite Aid. ET

Market Extra These companies are most vulnerable to junk-bond meltdown Published: Dec. 15, 2015 at 2:46 p.m. With average yields that are significantly higher than those of more favorably rated municipal or corporate bonds, junk bonds offer generous interest payments compared to the rest of the bond market. The Federal Reserve is now buying junk bonds, and analysts at Jefferies argue that presents an opportunity for investors to load up on shares of leveraged companies that are out of favor.

For many investors, the term "junk bond" evokes thoughts of investment scams and high-flying financiers of the 1980s, such as Ivan Boesky and Michael Milken… Bonds from companies such as Delta Air Lines and Marriott International are trading like they are rated at the bottom of the high-yield scale. The list also includes Revlon and Rite Aid. In the early 1900s, junk bonds returned to finance the start-ups of companies that are well-known today: GM, IBM, and J. P. Morgan’s U.S. Steel.