Euro Investors Demand Better Bond Covenants

Laughlin, Kate
March 2006
Investment Dealers' Digest;3/13/2006, Vol. 72 Issue 10, p12
Trade Publication
The article reports that high-grade investors in Europe have been refusing to buy bonds from a number of investment-grade companies unless issuers put change-of-control provisions in the indenture. While high-yield bonds usually have change-of-control provisions but this is not the case in the high-grade market. The new requirement by investors could prove detrimental to the leveraged buyouts of large companies.


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