Product details

Describes the market for high-yield, or 'junk,' bonds and includes summaries of academic research on the risk/return characteristics of high- yield securities. Describes the role of Drexel Burnham Lambert in the primary and secondary markets for high-yield debt. Decision focus is on a public offering of four high-yield securities issued by Metromedia Broadcasting Corporation in November 1984. The offering was used to refinance bank borrowings incurred in connection with Metromedia's June 1984 leveraged buyout. The securities offered included Serial Zero Coupon Notes due 1988-93, Senior Exchangeable Variable Rate Debentures due 1996, 15 5/8% Senior Subordinated Debentures due 1999, and Adjustable Rate Participating Subordinated Debentures due 2002. Proceeds from the offering totaled $1.2 billion.