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We analyse security design parameters of 1,115 high yield (HY) and investment grade (IG) event risk covenants (ERC) protected issues between 1986 and 2012 from the agency conflict perspective. We find positive and significant stock price reaction to the issuance of HY but not the IG issues....
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Carrizosa and Ryan (2017) explore the use of private information covenants, which contractually oblige borrowers to provide their lenders with private information: projected or intra-quarter financial statements. The authors offer evidence that creditors acquire private information about...
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the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …
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firms. The study is based on the credit files of the respective firms. If no problems occur in these lending relationships …, the traditional view of credit assessment as observation of the quality of a borrower's investment programme needs to be …
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