In the world of bond investing, risk mitigation is critical, hence bond covenants serve as important safeguards of investor interests. These contractual agreements outline the terms and conditions of bond issuances, providing a framework to protect bondholders from potential risks and uncertainties. Among the myriad of bond covenants, change of control restrictions, ratings restrictions, and sale of assets restrictions stand out as key provisions aimed at fortifying the position of bondholders. Let's explore how these provisions work and how they seek to shield bondholders from adverse circumstances.
Change of Control Restrictions
Chang...
Last week our team watched the Bob Marley One Love movie, as a part of a staff movie night that was dubbed “One Team, One Love”. While watching, I got an appreciation of Bob Marley's music and message of love, unity, and justice and how it continues to resonate with people worldwide. As I watched, I also realized how much his life and legacy also offer profound lessons in estate planning. Despite passing away at a relatively young age, Bob Marley's estate planning, or lack thereof in some respects, has been the subject of much discussion and legal battles. The Jamaican state split Marley’s fortune between his survivors and it was the start of...
Due to the heavy influx of news that we receive daily, you may have missed out on some financial news and the opportunities presented by the tremendous volatility in the U.S. stock, Mutual fund, and Bond markets as well as the various upheavals in other global markets. Market volatility...
May 16, 2021
How often have you heard the terms “bull” or “bear” used in the investing world to describe general actions, attitudes, or sentiment, either of an individual asset or the market conditions? As common as these terms are, defining, understanding, and remembering what they mean is not always...
May 09, 2021
One of the many things I have observed during this pandemic is how similar people and Investments are. I know this seems like a strange thing to say but journey with me for a few and you will see the similarities too.
One of my friends and I had a conversation about curfew compliance a...
May 02, 2021
How often do you re-assess how much money you will need to last you through your retirement? Did you know that this figure will change based on the interest rate environment? Interest rates affect how much money you need to put aside each month for retirement. It also affects what your...
Apr 25, 2021
The U.S. equity markets have attracted a lot of interest in recent months as the economic recovery takes shape (i.e., V-shaped recovery) and even accelerates. Indeed, the equity markets have had a tremendous run since their COVID-19 meltdown in March 2020 which resulted in the major U.S...
Apr 18, 2021
The Planning and setting of goals are a very important part of our daily lives. This should also be applied to our finances to accomplish financial freedom. Having a goal that is realistic as well as steps that are measurable, will allow for easy tracking of our progress.
Determine your...
Apr 11, 2021
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