Год: 2010
Автор: Anna Fattor
Издательство: LAP Lambert Academic Publishing
In the aftermath of the recent financial crisis, the introduction of particular clauses in the debt contracts may represent an useful instrument to enhance their efficiency. Covenants are agreements that give the creditors more guarantees about the reliability of their loan: when they are breached, they allow the lenders to take certain actions, as the early repayment of the loan or the change of the debts terms, in order to protect them against a potential borrowers default. Covenants are therefore useful for creditors protection but they also restrict the business policies of borrowers. These clauses may be included both in public and in private debt. The goal of this work is to provide a theoretical model that analyses the impact of a covenant on both types of debt. In order to guarantee the efficiency of the instrument, there are some necessary conditions to satisfy, otherwise it does not collect the desired result. To define the conditions for the covenant efficiency, we…


    1. fahad khan bz of its some features same as debt like fixed dividend
      no voting rights
      priority capital in case of wind up

  1. Well lucky for the 1st class loan holders. All the drink carts are going to go rolling towards the front of the plane as it nose dives! Of course the pilots are going to get a little tipsy too!

  2. I never seen so much positive feedback for this guy in all his videos. He does have great teaching skill. Thanks

  3. is there ever a benefit to having a larger leverage ratio? as in more debt, less equity

  4. Thank you so much for Great Explanations and so easy to understand it..

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  6. This video just confirmed my theory on the dislikes button; 1 is the default number.
    Capital structure was once complex, its now simple, thank you.

  7. Great video. After a couple of minutes I got used to British pronunciation and was able to concentrate on information. Will wait for new videos!

  8. yes sir. penny stocks trading needs good patience and advice from experienced professionals. be mature and do this, One of my friend making tons of money from penny stocks with professional easy guidance. its worth a try here >>> bit.ly/13OpMpu?=uidgcl

  9. The theme Im starting to gather from these videos is that business men always need a drink.

  10. This is really good. I posted your video on my blog site a couple of days ago.

    I think that someone just barely above the basic level can watch your video and understand the repayment sequence.

    You also do a great job of explaining WHY a company would swap debt for equity and why an investor might be willing, too.

    Thank you.

  11. Goodness, Paddy taught me in a matter of 6 minutes and 43 seconds what would take perhaps a whole class period to teach this concept.
    Oh hes good!

  12. All I can see when watching this guy is deniro in taxi driver hahah

  13. Very good video !!! Thanks a lot.
    But the speech is so fast that I had to watch the video with a speed of 0.75 haha

  14. Its an epic explanation. Really a brilliant piece of information. Especially the last three minutes help me solve my assignment
    Thanks Pro if you see my comment

  15. Can the guys who converted their Bonds and Preferred Equity to common equity convert back to their respective asset classes once the company is back on track ? Thanks you.

  16. Love how he ends this video with the same sentence! Everybody, needing a drink. Makes finance looks so easy.

    1. @corkskrewclubhouse93 my mate Paddy wouldnt have a job then would he!!!!?

  17. Its a shame only a few thousand people have saw this. This is great information

  18. Im confused that why after conversing some bonds to normal share can reduce the risk?

    1. Companies are often required to make incremental payments to debt holders that have lended them capital to grow their businesses. There is also calling of bonds to consider too, but that is outside of the scope of this example. I hope that helps.

    2. Companies have to pay bond holders (interest payments + principle at maturity).  Companies do not have to pay common stock holders.

  19. these examples u give like the plane tend to stick in my mind longer then the usual lectures they give in classes.
    thank u

  20. grt lecture sir..sir is thr is any of ur video on carrot and stick bond or clip and strip bond..

  21. Yes but if the plane crashes it will kill the people on the front first 🙂

  22. I know I’m supposed to be concentrating cause I have a test tomorrow but this guy is kinda sexy

  23. Almost all college professors talk to themselves when teaching, that is to say, the value that students seek to educate themselves at colleges have been failed by these professors. They all suffer from a disease called I have done this too long disease and cant possibly relate themselves to the new incoming students from doing it yearly. Professors should be retired and shuffled to keep them fresh. Their gibberish talk is a way for them to keep themselves relevant in an age of irrelevant. There is the internet that can teach better. Thank you sir for showing us that there is a better way.

  24. thats good man really get it well now these ur tutorial is a legacy hahaa thanks by the way

  25. hey paddy
    does this work like the equity swaps as explained on wiki?

    as in does the bond holders behave like the A in the wiki example

  26. above all, I understood why there is first class and so on in the airplane.

  27. Thank you thank you thank you. This is one of the best explanation for this, I understand this concept very easily as explained. And the sass is well deserved.

  28. Those three years of economics class made you understand these videos. Watching these videos is a good way to go deeper into the theory.

    Things you learn at school are essential, but not always as exciting as these videos from marketplacevideos 😛

  29. Thank u sir . . .
    I really like your style and methodology of teaching and also thanks for clearing my doubts about capital structure

  30. 1. Im interested in finance/economics
    2. Stumbled upon it by looking up other financial videos on youtube
    3. easy to understand and short
    4. i only use youtube so far

  31. Keep up the good videos. I like this format for learning about something that I know nothing about!

  32. No, Youre wrong there buddy. These videos are more useful than 3 years in economics class.

  33. What about the difference b/w common and preferred share?? Are preference shares part of equity or debt?? Can we include preference shares in equity on balance sheet??

  34. wowwww such good illustration!!! 6mins seem so short with his explanation, too interesting

  35. this guy is a genius. late at nite here in manchester (north west england) I enjoy his teachings over a stiff double vodka and red bull with a pint of holsten pils chaser! never fails to enlighten me at times like this! thank you sir!

  36. He is simply great…Kudos to a talent like this…

    You rock sir….God bless you

  37. I like how he realized his plane looked a little wonky, b/c, honestly, that thing looked like a bisected penis.

  38. Thank you for the clear and easy-to-understand explanation. Very well done.

  39. 0.28 when you realize that you have not drawn a plane and try to correct it.

  40. its awsome…. if you have this type of video related with finance plz upload………..

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