Which 1989 crash in the United States was triggered when leveraged buyouts and junk bonds lost investor confidence?

The Friday the 13th mini-crash occurred in the United States on 13 October 1989 as confidence in leveraged buyouts and junk bonds weakened.

The Dow Jones Industrial Average fell 190.58 points, or 6.91%, in a single session. The decline was linked to the collapse of a proposed $6.75 billion leveraged buyout of United Airlines’ parent company. Investors also worried about the large amount of high-yield debt used to finance corporate acquisitions.

The episode is called a mini-crash because it was severe but much smaller than the 1987 global collapse. It is also known as the Friday the 13th mini-crash because the sharp fall occurred on that calendar date. The event exposed the risks created when acquisitions depend heavily on borrowed money.

It should not be confused with the 1929 Black Tuesday crash or the 1987 Black Monday crash. Those labels refer to different dates, market conditions, and historical crises.