PPT Slide
A junk bond is high-risk, high-yield bond frequently issued as part of the financing packages for a merger or a leveraged buyout, or else issued by a troubled company. A junk bond is any bond rated BB or below.
Project financings are used to finance a specific large capital project. Sponsors provide the equity capital, while the rest of the project’s capital is supplied by lenders and/or lessors who do not have recourse.