Who Is Michael Milken?

Michael Milken is a financier turned philanthropist best known for creating and popularizing the modern high-yield (or “junk”) bond market in the 1970s and 1980s. His innovations helped companies with weak credit access capital, reshaped corporate finance, and made him one of Wall Street’s highest-paid executives — but they also led to legal trouble that culminated in a criminal conviction. Since his release, Milken has focused on philanthropy, particularly in education and medical research.

Early life and education

Born July 4, 1946, in Encino, California.
Bachelor’s degree from the University of California, Berkeley (1968).
MBA from the Wharton School at the University of Pennsylvania.
Joined Drexel Burnham Lambert in 1969 and quickly rose to head the bond trading department.

Career and the rise of the junk bond market

At Drexel, Milken built a high-yield bond trading and underwriting business that targeted issuers with lower credit ratings.
He argued that investors could earn higher returns by accepting greater credit risk and that issuers otherwise shut out of capital markets could use these bonds to grow or restructure.
Milken led Drexel’s involvement in leveraged buyouts, hostile takeovers, and extensive underwriting of high-yield debt.
At its peak in the 1980s, Drexel controlled roughly 70% of the junk bond market.
Compensation highlights: reported earnings of roughly $550 million in 1987 and more than $1 billion over a four-year span.

Legal troubles and conviction

The high-yield boom coincided with aggressive dealmaking and several insider-trading investigations. Trader Ivan Boesky’s 1986 conviction implicated networks of brokers and executives.
In 1990 Milken pleaded guilty to six felony counts of violating securities laws. He was sentenced to 10 years in prison, fined $600 million, and barred from the securities industry by the SEC.
His sentence was reduced to about two years after cooperation and good behavior. Drexel Burnham Lambert filed for bankruptcy in 1990.
After his release he faced additional penalties for violating probation by advising companies and was later fined.
In February 2020, Milken received a full pardon.

Philanthropy and later work

Milken chairs the Milken Institute and founded the Milken Family Foundation. His charitable work emphasizes:
Medical research and accelerating treatments (notably cancer and precision medicine).
Education initiatives, including awards for K–12 teachers and support for college-bound students.
He has written and supported resources related to healthy living following a prostate cancer diagnosis, including a cookbook focused on nutrition for cancer patients.
Estimated net worth: about $7 billion (early 2025).

Legacy and impact

Milken transformed capital markets by creating a large market for high-yield debt that funded many companies that otherwise lacked access to credit.
He became a symbol of both the entrepreneurial spirit and excesses of 1980s Wall Street: lauded for innovation and criticized for practices that contributed to market misconduct.
Cultural note: elements of his persona and era helped inspire fictional characters such as Gordon Gekko in Oliver Stone’s Wall Street.

Quick takeaways

Pioneer of the modern junk bond market and a central figure at Drexel Burnham Lambert.
Convicted in 1990 on securities charges, served reduced prison time, and later pardoned.
Since his release, an influential philanthropist focused on education and medical research.