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Unformatted text preview: market for original-issue junk. Although the issuers of original junk bonds must pay a higher yield than on investment-grade bonds, the yield was still lower than what many businesses had to pay for bank loans, if they could get a bank loan at all. Hence, many of these businesses, sometimes referred to as venture-capital situations , growth market or emerging market companies , were willing to issue original-issue junk bonds. In the hope of lowering the yield, these bonds were often sold with optimistic financial projections and a description of how it would be achieved—hence, the nickname, story bonds ....
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- Fall '11
- Bankruptcy, Drexel Burnham Lambert, Michael Milken, Junk Bonds—Story Bonds, Fallen Angels Fallen, original junk bonds