The Modern Role of Bond Covenants (The Research Foundation of AIMR and Blackwell Series in Finance)

Bond covenants-designed to control conflicts of interest between shareholders and bondholders-are important because lack of adequate protection can erode bondholder value. This monograph investigates whether existing covenants are adequate or whether they have lost value as a result of factors that assumed prominence during the leveraged-buyout era. BookmarkTitle:......Page 1 BookmarkTitle:......Page 2 BookmarkTitle:......Page 3 BookmarkTitle:......Page 4 BookmarkTitle:......Page 5 BookmarkTitle:......Page 6 BookmarkTitle:......Page 7 BookmarkTitle:......Page 0 BookmarkTitle:......Page 8 BookmarkTitle:......Page 9 BookmarkTitle:......Page 10 BookmarkTitle:......Page 11 BookmarkTitle:......Page 12 BookmarkTitle:......Page 13 BookmarkTitle:......Page 14 BookmarkTitle:......Page 15 BookmarkTitle:......Page 16 BookmarkTitle:......Page 17 BookmarkTitle:......Page 18 BookmarkTitle:......Page 19 BookmarkTitle:......Page 20 BookmarkTitle:......Page 21 BookmarkTitle:......Page 22 BookmarkTitle:......Page 23 BookmarkTitle:......Page 24 BookmarkTitle:......Page 25 BookmarkTitle:......Page 26 BookmarkTitle:......Page 27 BookmarkTitle:......Page 28 BookmarkTitle:......Page 29 BookmarkTitle:......Page 30 BookmarkTitle:......Page 31 BookmarkTitle:......Page 32 BookmarkTitle:......Page 33 BookmarkTitle:......Page 34 BookmarkTitle:......Page 35 BookmarkTitle:......Page 36 BookmarkTitle:......Page 37 BookmarkTitle:......Page 38 BookmarkTitle:......Page 39 BookmarkTitle:......Page 40 BookmarkTitle:......Page 41 BookmarkTitle:......Page 42 BookmarkTitle:......Page 43 BookmarkTitle:......Page 44 BookmarkTitle:......Page 45 BookmarkTitle:......Page 46 BookmarkTitle:......Page 47 BookmarkTitle:......Page 48 BookmarkTitle:......Page 49 BookmarkTitle:......Page 50 BookmarkTitle:......Page 51 BookmarkTitle:......Page 52 BookmarkTitle:......Page 53 BookmarkTitle:......Page 54 BookmarkTitle:......Page 55 BookmarkTitle:......Page 56 BookmarkTitle:......Page 57 BookmarkTitle:......Page 58 BookmarkTitle:......Page 59 BookmarkTitle:......Page 60 Bond covenants - designed to control conflicts of interest between shareholders and bondholders - are important because lack of adequate protection can erode bondholder value. This monograph investigates whether existing covenants are adequate. On November 30, 1988, Kohlberg Kravis Roberts was declared the winner in a contested bid for the leveraged buyout (LBO) of RJR Nabisco.