Michael Milken

High-yield finance and a second act

Milken graduated from the University of California, Berkeley and earned an MBA from Wharton before joining the firm that became Drexel Burnham Lambert in 1969. He became a leading advocate for using high-yield debt to finance companies that traditional lenders often considered too risky. ^[1][2]

His work helped expand the market for below-investment-grade bonds and made him one of the most influential financiers of the 1980s. The financing model broadened access to capital for companies outside the investment-grade market and became an important part of modern corporate finance. ^[1][2]

Milken later concentrated on private investments, medical research and philanthropy. He cofounded the Milken Family Foundation, founded the Milken Institute and supported organizations focused on cancer research and public health, building a durable second institutional legacy beyond capital markets. ^[2][1]

The volume of securities financed through Drexel or the capital raised by issuers should not be confused with Milken's own wealth. His fortune reflects compensation and investments accumulated through his financial career and later activities, while the debt capital itself belonged to issuing companies and investors rather than to the banker who helped create the market. ^[1][2]