easy · Corporate Credit Analysis

In a corporate restructuring, what is a 'Fulcrum Security'?

1. The debt class that is most likely to be converted into equity of the reorganized firm.
2. A government-backed bond that provides liquidity to the distressed market.
3. The equity tranche that retains control of the company despite bankruptcy.
4. The senior-most loan that is guaranteed to be paid 100% in cash.

Sign up free to see the explanation and track your rank →