FIIG Strategy - Understanding Covenants - May 2019
by
Jessica Rusit | May 30, 2019
Covenants are a key line of defence for bondholders, especially when investing in unrated or sub investment grade bonds. They act to align the interests of both the issuer and the bondholders and serve as a layer of protection well ahead of any potential payment default. Here we look at the different covenants and how they work.