What’s in this chapter:
• Why analysis starts with liquidity and asset value
• Why the issues of corporate and bond structure matter so much in analysis
• Why event analysis is used
• When relative value analysis is used
Earlier, the two starting points of credit analysis were outlined:
• Is there enough liquidity to service the debt?
• In case there is not enough liquidity, is there enough asset value to get repaid through a sale of the company or restructuring?
The next few chapters discuss credit analysis in detail. Before we move on, this chapter expands on these two basic points and shows you how understanding structure and ranking fits into understanding asset protection. You’ll also see how event analysis ...