The Birth of the High-Yield Market

Mike Milken is credited with the creation of the high-yield bond market, which emerged during the late 1970s and early 1980s. This innovation allowed companies that previously struggled to access capital markets to benefit from investment opportunities, transforming business financing. Milken's approach focused on the democratization of capital, ensuring that thousands of investors could participate in funding businesses instead of a select few banks making all the decisions. His work fundamentally changed how companies could raise funds, leading to the proliferation of private equity and advanced capital structures in various industries.