Which 1989 stock-market crash is associated with the collapse of U.S. leveraged buyout financing?

The 1989 stock-market crash associated with the collapse of U.S. leveraged buyout financing was the Friday the 13th mini-crash.

On Friday, 13 October 1989, the Dow Jones Industrial Average fell 190.58 points, or 6.91%. The immediate shock was the failure of a proposed leveraged buyout of United Airlines. The transaction depended on financing that was withdrawn, raising fears about the broader market for highly leveraged acquisitions.

The fall was sharp but much smaller than the 1987 Black Monday collapse. It also did not mark the beginning of a prolonged worldwide depression. The episode nevertheless demonstrated how financing conditions and takeover speculation could transmit stress into public equity markets.

The event is sometimes called the October 1989 mini-crash or the Friday the 13th mini-crash. It should not be confused with the 1987 crash, which occurred two years earlier and produced a substantially larger percentage loss.