:: "The Mother of All Actuarial Glossaries"
- Joint Lives (A/D)
Situations involving two or more lives.
- Junk Bond (E)
A bond which does not meet the usual requirements of income cover and
capital cover for institutional investors. Junk bonds became popular in the
late 1980s, offering high rates of interest, backed by the 'promise' that
things would turn out OK when (if) the borrower ... blah, blah blah ... !
Many junk bonds went sour when the various predictions of future riches did
not come true. Junk bonds were used largely in the US to finance highly
speculative corporate takeovers.