Liability management and the credit crunch
Issuers can use liability management techniques to avoid breaching the terms on outstanding debt. Here is how.
The past couple of months has seen a tightening of credit globally, resulting in greater pressure on borrowers worldwide. At the same time stock markets in Asia and the rest of the world have been volatile.
So, what happens to companies with outstanding capital markets debt, or equity-linked capital markets debt, when a worsening economic environment puts pressure on their ability to adhere to the provisions of such borrowings
Liability management is the collective name for techniques companies...
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