Aggressive Terms For Junk Deals

Sargent, Carolyn
November 2004
Investment Dealers' Digest;11/8/2004, Vol. 70 Issue 43, p12
Trade Publication
Describes how issuers in the bull market for junk push down increasingly aggressive deal structures. Higher leverage levels; Longer maturities; Less call protection; Sinking fund provision which allows the issuer to repay a portion of the principal amount every year at par; Risk introduced by a sinking fund; Features that marked the deal as particularly aggressive.


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