Who Invented Junk Bonds

Michael Milken, the notorious investment banker of the 1980s, allegedly coined the term “junk bonds” to describe the portfolio of low-grade bonds owned by one of his early clients, Meshulam Riklis.

When were junk bonds invented?

Shenkman. High Yield Bonds: Market Structure, Portfolio Management and Credit Risk Management. New York: McGraw-Hill, 1998.

What was Michael milkens crime?

Michael MilkenConviction(s)Securities and reporting violations (1989)Criminal chargeRacketeering, securities fraud, etc.Penalty22 months imprisonment (actual time served) $600 million fineWebsitehttp://