Should corporate debt include a rating trigger

By Karan Bhanot, A. Mello. 2006

126 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/c10d6d7bcc8f40d9d0335e4fbd0073f27b090827

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Gustavo Manso
2. Alexei Tchistyi
3. Boris Albul
4. Dwight M. Jaffee
5. Bruno H. Strulovici

In Finance

1. Gustavo Manso
2. Alexei Tchistyi
3. Boris Albul
4. Dwight M. Jaffee
5. Bruno H. Strulovici

Citations in the corpus

• Contingent Convertible Bonds and Capital Structure Decisions (2010, background): “Based on (3), for all three cases the default-triggering asset level AB = $45.”
• Performance-Sensitive Debt (2010, background): “However, Bhanot and Mello (2005) show that rating triggers that increase coupon rates are in general inefficient in preventing asset substitution.”
• Credit Rating Agencies in Capital Markets: A Review of Research Evidence on Selected Criticisms of the Agencies (2007, unknown): “See Stumpp (2001) and Bhanot and Mello (2006) for further discussion and analysis of rating triggers.”
• Do Rating Agencies Cater? Evidence from Rating-Based Contracts (2015, unknown): “Contracts that link either payments or the posting of collateral to a deterioration of credit risk mitigate the incentives to engage in claim dilution (Bhanot and Mello 2006; Manso et al. 2010).”