Which 1989 U.S. market event began after leveraged buyouts and junk bonds helped fuel financial-market anxiety?

The 1989 U.S. market event linked to leveraged buyouts and junk-bond anxiety was the Friday the 13th mini-crash.

On October 13, 1989, the Dow Jones Industrial Average fell 190.58 points, or about 6.9 percent. The decline followed the collapse of a proposed leveraged buyout of United Airlines. Investors worried about whether the financing could be completed and about the broader condition of the market for high-yield, or junk, bonds.

The fall was abrupt but much smaller than the 1987 Black Monday crash. It also did not produce the same prolonged market disruption as the 2008 financial crisis. The episode nevertheless showed how corporate takeover financing, high-yield debt, and equity markets could affect one another.

The nickname refers to the calendar date rather than to the magnitude of the loss. It is therefore distinct from Black Monday, the name usually given to the October 19, 1987 crash.