CovenantReview

An independent review of corporate bond covenants for the sophisticated investor

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C orporate bond covenants are the creation of a routinely peculiar process: One of a select group of law firms serves up a standard form “Description of Notes” to the issuer. The issuer bangs the table for “flexibility” and its counsel sends back a heavy markup. The underwriter’s counsel resists the most liberal parts of the markup until the issuer and investment bankers reach a vague understanding of what is “market” for comparable bond issues. Investors often do not have the time or expertise to analyze the covenants for each of the many offerings they review. As time passes, the indenture gathers dust until the credit begins to weaken or the fateful day when the issuer announces a change of control, special dividend or other unusual event. When investors call counsel for the issuer or underwriter—or even an unrelated law firm—they are usually turned away due to conflicts of interests or because answering discrete indenture questions does not meet their firm’s business model. Meanwhile, most research analysts do not have the time or expertise to regularly analyze bond covenants. Fortunately, since 2006, sophisticated investors have been able to turn to Covenant Review to help answer their indenture questions. Our research is written by practicing attorneys with top law school and law firm credentials. We are proud of our demonstrable history of predicting covenant risks and opportunities. Let us show you why we are “The Bottom Line on Covenants.”™		Dramatic illustration


Contact:	Adam B. Cohen 1-212-209-3909	Covenant Review, LLC 708 Third Avenue, 6th Floor New York, NY 10017 www.covenantreview.com