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Economic Commentary

Junk Bonds and Public Policy

Over the past few years, the financial public has developed a fascination with the growth in the market for so-called junk bonds. In this Economic Commentary we would like to shed some light on the role of these instruments by providing a working definition of the term “junk bonds,” by discussing their place in the financial world, and by examining a few of the issues surrounding concern over the growth of corporate debt.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Fons, Jerome. 1986. “Junk Bonds and Public Policy.” Federal Reserve Bank of Cleveland, Economic Commentary 2/1/1986.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International