Chapter 15: The Role of Corporate Debt Markets

In this section

• Debt Covenants and Corporate Governance
  Explore how debt covenants shape corporate governance, reduce agency conflicts, and impact capital structure decisions, while learning to balance covenant strictness with financial flexibility in real-world scenarios.
• Secured versus Unsecured Corporate Debt
  Explore the key differences between secured and unsecured corporate debt, including collateral requirements, ranking in liquidation, risk-return trade-offs, and strategic business implications.
• Credit Ratings and Capital Structure Implications
  Discover how credit ratings influence corporate capital structures, affect borrowing costs, and shape company decisions on debt and equity issuance.
• Bonds versus Syndicated Loans
  Compare structural and contractual differences between corporate bonds and syndicated loans, with insights into interest rates, maturities, underwriting processes, and strategic financing decisions.
• Vignette: Corporate Debt Policy Scenarios
  Explore in-depth scenarios of secured versus unsecured debt, covenant constraints, and rating implications that guide crucial corporate financing decisions.