Chapter 5: Corporate Debt Markets

In this section

• Investment-Grade vs. High-Yield Bonds
  Explore the essential distinctions between investment-grade and high-yield corporate bonds, including their ratings, risk-return profiles, liquidity considerations, and investor preferences.
• Secured vs. Unsecured Structures
  Explore the differences between secured and unsecured corporate debt structures, including collateral practices, recovery considerations, and typical covenant variations.
• Credit Enhancements and Covenants
  Explore how credit enhancements and covenants shape corporate bond structures, reduce borrower risk, and support issuer obligations in the fixed-income market.
• Rating Agency Perspectives and Market Dynamics
  An in-depth exploration of how rating agencies evaluate corporate debt and influence bond market movements, yield spreads, and investor strategies.
• Hybrid Corporate Debt (Convertible, Subordinated, and Tiered Instruments)
  Explore the key features, valuation considerations, and regulatory nuances of hybrid corporate debt, including convertible bonds, subordinated structures, and tiered instruments in the financial sector.
• Financial vs. Non-Financial Corporate Issuance
  Explore the key differences between financial and non-financial corporate bond issuance, focusing on regulatory capital requirements, credit risk assessment, and market perceptions that shape these distinct segments of the corporate debt market.
• Bankruptcy Processes and Debt Restructuring
  Explore the fundamental principles, practical processes, and strategic considerations of corporate bankruptcy and debt restructuring, including reorganizations, liquidations, and the priority of claims.
• Corporate Bond Issuance Lifecycles and Prospect Analysis
  Explore the comprehensive journey of a corporate bond from the initial decision to issue debt through underwriting, roadshows, pricing, and ongoing prospect analysis.
• Shelf Registration and Medium-Term Notes (MTN) Programs
  An in-depth exploration of how corporations use shelf registration and ongoing MTN programs to efficiently tap debt markets, boost financial flexibility, and meet evolving investor demand.
• Changes in Corporate Bond Market Microstructure Post-Crisis
  Exploring how regulatory reforms, electronic trading, and shifting dealer dynamics have transformed the corporate bond market’s microstructure in the post-2008 era.
• Corporate Governance Reforms and Debt Market Implications
  An in-depth look at how corporate governance improvements can reshape risk assessment, credit pricing, and capital structures within the debt markets.
• Covenants in Leveraged Loan and High-Yield Bond Markets
  Learn how covenants shape credit risk, lender protection, and borrower flexibility in leveraged loan and high-yield bond markets through practical examples and structured insights.
• Private Debt Markets and Direct Lending
  Learn the structure, features, and risk considerations of private debt and direct lending, including unitranche, mezzanine financing, and second-lien loans, with a focus on real-world practices and exam relevance.
• Trends in ESG Ratings and Corporate Bond Implications
  In-depth exploration of how ESG ratings are transforming corporate debt analysis, with practical examples, frameworks, and exam-focused insights.
• Corporate Liability Management Exercises (Exchange Offers, Consent Solicitations)
  Explore how corporate issuers refine their debt obligations through exchange offers and consent solicitations, including strategic goals, key steps in the process, and the potential impact on bondholders and credit ratings.
• The Role of Private Equity in Leveraged Finance
  Explore how Private Equity sponsors utilize leveraged finance structures, such as leveraged loans and high-yield bonds, to acquire, grow, and exit investments in target companies.