Bond Math
If you have a bond that trades at a 8% yield, with a 9% coupon, this is the correct term for where the bond is trading.
What is a premium?
This is what both LIBOR and SOFR stand for.
What are the London Interbank Offered Rate and Secured Overnight Financing Rate?
These are the three main types of LMEs that we covered.
What are Dropdowns, Non-Pro-Rata Uptiers, and Double-Dips?
After Masa...yoshi's massive initial investment in WeWork and Adam Neumann, this was WeWork's valuation in 2019.
What is $47bn?
This is was the fifth room we had Credit Camp in.
What is 210?
Assuming that you have a note that trades at 80 cents on the dollar, with a 5% annual coupon, that matures in 4 years and returns par, this is the approximate YTM.
What is ~11.25%?
Out of all of the potential claims in the capital structure, given a Chapter 11 situation, this is the claim/expense to always get paid back first.
What are professional fees?
This is an example of a company's behavior that may point to a potential filing.
What is drawing the entirety of their revolving credit facility, stalling payment of suppliers, selling assets, or stopping dividends?
This was the name of the series that depicted Loewen Group's litigation against O'Keefe.
This was the biggest loser in Cap Stack Poker history.
Who is Spencer Johnson?
What is Bond B?
Of the following liens of debt, this one would be the third most subordinated:
- Preferred Equity
- 1L Revolver
- 2028 Unsecured Notes
- Common Stock
- 2L Term Loan
- 2027 Secured Notes
What are the 2028 Unsecured Notes?
This is the name of the legal identification that a credit committee participant in an out-of-court solution must present to the opposite party when attempting to trade the respective debt.
What is a big boy letter?
These were the two main winners in the Caesar's Palace bankruptcy given their aggressive behavior towards recovery value in Chapter 11 court.
Who are the Unsecured Junior Creditors (Appaloosa Management and Oaktree Capital Management)?
Who are Jacob, Ryley, Bela, Johnny, Krisha, Charu, and Justin?
Of the following, this is the Yield-To-Worst (YTW):
- Current Yield: 6.7014%
- Yield to Call: 6.3285%
- Yield to Par: 6.1321%
- Yield to Maturity: 6.4562%
What is the Yield to Par, or, 6.1321%?
In the early 2000s, this type of credit product was particularly popular following the distressed high-yield debt period of the 1990s, given the less strenuous effect on financial institutions' balance sheets.
What are syndicated loans?
These are the types of Chapter 11 filings, in order of least to greatest duration in time spent attempting to find a solution.
What are Pre-Pack, Pre-Arranged, and Free-Fall/Traditional?
In the Flagstar Companies bankruptcy, these were the 4 main contentions that the junior creditors had.
What is the recovery value, true subordination, executive compensation, and legal releases?
When people were initially confused about the FoxCo example in Session 6, this is what Ryley suggested to do that, in reality, had no impact on the misunderstanding.
What is write in a different colored marker?
Given a convexity of 0.5%, a Modified Duration of 5.5%, and a bond with a yield of 13% at 70 cents on the dollar, this would be the new price of the bond if perfectly interpolated interest rates went up by 2%.
What is 60 cents on the dollar?
From greatest to least importance, rank the different types of subordination in a capital structure.
What are Contractual, Collateralized, Structural, and Maturity?
This is how many days the court usually gives management to develop an initial 'blueprint' or plan of restructuring.
This was the name of the Apollo executive who gave Caesar Palace creditors hell by executing over 50 transactions to prolong filing for bankruptcy.
Who is Marc Rowan?
In the clip of Industry that was shown in Session 3, this was the product that Rishi was trading.
What is the sterling/pound?