bond covenants, we document that four out of 24 restrictions are associated with significantly higher bankruptcy risk. The … bankruptcy, or within-creditor conflicts. Firms that use In-House Counsel to help structure their bond issue and those that use … use of these Default Indicating covenants is associated with higher bond and CDS spreads. Overall, the results help …

measured empirically. The study extends reduced form bond valuation models based on rating migration (matrices) by allowing … the minimum and maximum possible price through optimization. The study models bond value of individual issues as well as … portfolios. The cost of downgrade or default is delineated by calculating possible future bond or portfolio prices at a certain …

measured empirically. The study extends reduced form bond valuation models based on rating migration (matrices), by allowing … searching the minimum and maximum possible price, through optimization. The study models bond value of individual issues, as … well as portfolios. The cost of downgrade or default is delineated, by calculating possible future bond or portfolio prices …