Word: milken
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Dates: during 1985-1985
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...deal maker behind Pickens and most other corporate sharks is the investment firm Drexel Burnham Lambert, which controls nearly 75% of the junk- bond market. Drexel's Michael Milken, 39, developed today's market in junk bonds almost single-handed after researching them in 1969 as an M.B.A. student at Wharton School. Milken showed that junk bonds defaulted only slightly more often than prestige certificates, yet paid interest rates 3% to 4% higher. During the late 1970s, he patiently persuaded such big investors as pension funds and banks that the bonds were safe, and Drexel began issuing mounds of them...