KIC000067 - ,.- Overview of Bond Credit Analysis -_....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
,..------------------------------------------------------------ ---_. Overview of Bond Credit Analysis (continued) .:. Analysis of Collateral >- A corporate debt obligation can be secured or unsecured. r In the case of the liquidation of a corporation, proceeds from a bankruptcy are distributed to creditors based on the absolute priority rule. r What is typically observed is that the corporation's unsecured creditors may receive distributions for the entire amount of their claim and common stockholders may receive some distribution, while secured creditors may receive only a portion of their claim. )- The claim position ofa secured creditor is important in terms of the negotiation process. Overview of Bond Credit Analysis (continued) .:. Assessing an Issuer's Ability to Pay ). The ability of an issuer to generate cash flow goes considerably beyond the calculation and analysis of a myriad of financial ratios
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/06/2011 for the course FIN 428 taught by Professor Hood during the Fall '11 term at Iowa State.

Page1 / 2

KIC000067 - ,.- Overview of Bond Credit Analysis -_....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online