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...
Among the few things which are certain nowadays is that uncertainty will persist in global financial markets. Hence, after a brutal year in 2022 for investing, 2023 started out encouragingly for investors as continued signs of cooling inflation fuelled expectations of a further slowdown in...
Mar 13, 2023
Capital Markets plays a key role in the development of an economy. To demonstrate the impact of capital markets on economic growth we will explore the concept of the circular flow of income, what is financial capital, how companies access financial capital, the uses of financial capital...
Mar 06, 2023
Are you someone who reads all the reviews on Amazon and thoroughly researches a product before adding it to your cart and checking out? Do you research the financial institution where you are depositing or investing your money with the same thoroughness? Recent incidents in the Jamaican...
Feb 20, 2023
When my clients ask me what I think about recent developments, I remind them that nothing has changed. I tell them that the same investment principles that I have reminded them of for years still apply. These are some that readily come to mind.
The first one is to know your financial...
Feb 13, 2023
The need to invest your money wisely is greater than ever, and this often requires looking beyond the obvious as you must remain vigilant to protect your money. Here are some recommendations that can help you to become a smarter investor by learning to take action to protect and grow your...
Feb 06, 2023
The recent developments in our local financial sector have once again resurfaced the issue of risk and safety of our investments. As investors, we frequently neglect to ask the important questions that are needed to assess the safety of our banks, pension savings, investment houses or...
Jan 30, 2023
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