What was the name of the 1989 crash in which U.S. junk bonds and leveraged buyouts suffered a major sell-off?

The 1989 crash in which U.S. junk bonds and leveraged buyouts suffered a major sell-off was called the Friday the 13th mini-crash.

On Friday, 13 October 1989, the Dow Jones Industrial Average fell 190.58 points, or about 6.9%. The decline followed the collapse of a planned leveraged buyout of United Airlines’ parent company, UAL Corporation. The failed deal damaged confidence in highly leveraged corporate finance and the market for below-investment-grade bonds.

The event was much smaller than Black Monday in 1987, which is why it became known as a “mini-crash.” It also differed from the October 1987 crash in its immediate trigger and market context. The episode showed how stock prices could be affected by financing conditions and takeover activity, not only by changes in corporate earnings. The UAL deal’s failure exposed concerns about debt-heavy acquisitions and the fragility of investor confidence.