The public market for new speculative-grade bonds, also known as high-

The public market for new speculative-grade bonds, also known as high-yield or junk bonds, was created virtually single-handedly by Michael Milken and his firm, Drexel Burnham Lambert, in the late 1970s.

Prior to that time, the only corporate bonds that carried a speculative-grade rating were so-called _____, bonds that initially garnered an investment-grade rating, but later the issuer experienced financial distress so that their rating fell into the speculative-grade category.
a. discount bonds
b. concession bonds
c. fallen angels
d. cut rate bonds

ANSWER

C