Bond Games

  title={Bond Games},
  author={George S. Oldfield},
  journal={Financial Analysts Journal},
  pages={52 - 66}
Corporate debt indentures are complex contracts that include a variety of restrictions and options. On one side, an issuing corporation can engineer game-based transactions to escape covenant restrictions or capture option value for its stockholders. On the other side, bondholders can form coalitions to resist a corporation's endeavors and capture option value for the coalition. This article analyzes several types of such strategic debt transactions. The examples show that corporate debt games… Expand
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