Formation of the market of high-bond (junk bonds) in the United States in 1970–1980 years
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2017, Vol 79, Issue 1
Abstract
Market of high-yield bonds (also known as «junk bonds») began to emerge in the US in the mid-1970s and was associated with the activities of «junk bond king» Michael Milken from Drexel investment company. Junk bonds emitents are small and newly established companies which cannot get a high credit rating. Emission of high-yield (8–10 %) bond was their only chance to find its place in the financial market. Michael Milken realized the potential of these bonds, which, in fact, were often quite reliable securities, and started organizing their emissions by selling junk bonds to Savings and Loan Associations and other investors. In the 1980 issue of such bonds used for aggressive corporate takeovers, which supplied the capital from junk bonds market. Some of takeovers carried out in violation of laws that led to the arrest of Michael Milken, Drexel bankruptcy and the collapse of the entire junk bonds market.
Authors and Affiliations
S. Z. Moshenskyi
Keywords
Related Articles
- EP ID EP273341
- DOI -
- Views 120
- Downloads 0
Organizational-methodical provisions for the audit of operations with electronic money
To obtain objective and unbiased information about the accuracy and completeness of electronic money transactions at the enterprise, it is necessary to conduct an audit. The results of the external audit of electronic mo...
Improving the system of public debt management and strengthening sustainability of public finances
The scientific research describes the essence of public debt. It shows the lists the tasks that must be fulfilled in the process of public debt management. The paper analyzed the problems of state debt in Ukraine, which...
Motivation as the main factor of management labour efficiency
Personnel often becomes a factor, which provides successful, long-term functioning and a good reputation to an enterprise under modern conditions of fast change in the market environment. Nowadays, the owners of many ent...
Quality control of the documentation process in electronic economic activities
It is proved that the main tool that will provide adequate information resources e economic activities of social and economic relations are documenting quality control processes as the basis of global information space....
Budget system reforming as the direction of national economy development regulation
The article determines that the key task of reforming the budget system is to stimulate the socio-economic development of territories, to expand their resource base and to increase the economic potential. The need for t...