PT  - JOURNAL ARTICLE
AU  - Kenneth R. Yager II
AU  - Andrew H. Connor
TI  - Adventures in Unrated Debt Investing
AID  - 10.3905/jpe.2006.628341
DP  - 2006 Feb 28
TA  - The Journal of Private Equity
PG  - 97--101
VI  - 9
IP  - 2
4099  - https://pm-research.com/content/9/2/97.short
4100  - https://pm-research.com/content/9/2/97.full
AB  - Liquidity is provided in greater amounts and variety each year in the form of junior debt to finance companies. Thus, a significant amount of junior debt now resides with a large number of unrated middle-market companies. Veterans and new investors have arrived at this adventure in unrated debt investing from different backgrounds, skills, and agendas. This article provides a framework for protective action against downside risk in what is a relatively illiquid, covenant-light market where hesitation and uncertainty can cause harm with increasing speed.TOPICS: Private equity, credit risk management, downside-only measures, legal/regulatory/public policy