medium · Debt Capital Markets
Why is 'Portability' more common in High-Yield Bonds than in Investment-Grade Bonds?
- Because High-Yield issuers are more likely to be owned by Private Equity sponsors who seek frequent exits.
- Because Investment-Grade bonds do not have Change of Control covenants.
- Because the SEC forbids portability in bonds with ratings above BBB-.
- Because High-Yield investors prefer more ownership turnover.
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