Company, provided a major impetus during the development on the bond market. Drexel Burnham Lambert continued to be a major player during the development with the junk bond market. In fact, the firm publishes an index of 110 leading junk bonds (Worthy, 1987, p. 59).
The original impetus for the development in the junk bond industry was provided by the combination on the bull market which began in August 1982, as well as the recovery inside recession from the early-1980s, which started out in 1983. The combination of these causes lessened the risk of default for investors, whilst providing the issuers on the junk bonds a basis in your belief how the promised high-returns could possibly be sustained.
The leveraged-buyout boom on the early-to-mid-1980s provided a second powerful impetus for ones further development of the junk bond industry (Worthy, 1987, p. 59). Leveraged-buyout artists, including Ivan Boesky, found that junk bonds have been an nearly ideal way, in the pre-October 1987 crash environment, to finance their transactions (p. 59).
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