The process of raising funds by issuing unsecured low-grade, high-yield securities  (junk notes, junk bonds, etc.). This is usual at times of takeover in which the acquirer chooses to issue unsecured debt to finance a prospective transaction due to its lacking of enough cash to pay the acquisition price. High-yield financing is only affordable by large companies due to the sizable cash flow required to pay the high interest rates associated with it.

High-yield financing is also called junk financing.