Capital Allocators – Inside the Institutional Investment Industry Top 5 of 2024: #2: Michael Milken - EP.371
76 snips
Jan 2, 2025 Michael Milken, a legendary financier and philanthropist, transformed the high-yield bond market, fueling private equity's growth. He reflects on his career's impact and the importance of mentorship in investment leadership. Milken shares insights on nurturing curiosity in finance, advocating for democratizing capital access, and illustrates the critical role of human capital in achieving business success. He also opens up about his personal battle with cancer and his commitment to cancer research, emphasizing early intervention and the importance of education in societal progress.
AI Snips
Chapters
Books
Transcript
Episode notes
Watts Riots Inspiration
- Michael Milken's interest in finance began after the Watts riots in 1965.
- He met a man who believed he would never have access to capital due to his race, inspiring Milken to study credit.
Credit Rating Paradox
- Traditional credit ratings often misrepresent risk, with the riskiest perceived as best and vice-versa.
- This realization stemmed from Milken's research at Wharton, challenging conventional financial wisdom.
High-Yield Debt Success
- In the 1970s, a portfolio of non-investment grade debt could yield 100% returns in two years.
- This success validated Milken's approach and gave him credibility.
