low-level engagement on corporate governance and poor protection for covenants are sited as major issues that need addressing
When Philip Green gave up on his takeover campaign for UK retailer Marks & Spencer recently, its bondholders breathed a huge sigh of relief. The company's bond prices had plummeted when Green first revealed his plans for taking over the troubled retailer. Why bond prices should fall while the share price rocketed highlights some interesting differences between equity and credit analysts' views on a company. Additionally, the case of Marks & Spencer helps highlight the weak position that bondholders currently have in their dealings with firms - and in particular their low level of engageme...
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