|
|
Article: Wall Street's junkyard jitters. (future of junk bonds)
- Article from:
- U.S. News & World Report
- Article date:
- December 8, 1986
- Author:
CopyrightCOPYRIGHT 1986 All rights reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Wall Street's junkyard jitters
Just how great will be the impact on Wall Street of the Ivan Boesky affair? The answer may well lie in how heavy the damage turns out to be to the investment-banking firm of Drexel Burnham Lambert and the $120 billion "junk bond' market that it dominates.
As the firm that popularized use of junks and underwrites more of such offerings than anyone else, Drexel is virtually synonymous with those highyield, extra-risky securities. Though often issued by little-known firms or companies with low credit ratings to meet cash needs, the junks have played a major role in financing the takeover binge of the 1980s and a host of ...