Chapter 11
Applying Investment Banking to Fixed Income
IN THIS CHAPTER
Getting a primer on bonds
Looking at different types of bonds
Considering the position of bondholders
Seeing how bond prices are calculated
Considering how companies choose to issue debt versus equity
Typically, investment bankers talk about buying up a company’s stock to acquire a company. With their investment banking gurus at their side, convincing them that the shares are undervalued, financial tycoons often target a company’s stock to buy up.
But behind the scenes, companies often have outstanding debt. The holders of this debt, called bondholders, need to be dealt with, too, when a company is bought, restructured, or otherwise put through the financial engineering machine.
Bondholders usually sit quietly in the background, silently accepting their interest payments from the company. But during times of major upheaval at companies, they tend to raise their voices.
The concerns of bondholders are voiced loud ...
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