RT Journal Article
SR Electronic
T1 Adventures in Unrated Debt Investing
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 97
OP 101
DO 10.3905/jpe.2006.628341
VO 9
IS 2
A1 Kenneth R. Yager II
A1 Andrew H. Connor
YR 2006
UL https://pm-research.com/content/9/2/97.abstract
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