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 engagem...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
