What are the conditions imposed on a debt issuer that are designed to protect bondholders ?
A) Collateral agreements
B) Vanilla wrappers
C) Protective covenants
D) Default provisions

Question

Quizplus · Accepted Answer

Protective covenants are conditions imposed on a debt issuer that are designed to protect bondholders. These covenants may include restrictions on the issuer's ability to take on additional debt, limitations on the use of funds raised through the issuance of the bond, and requirements for maintaining certain financial ratios or other performance measures. Collateral agreements and default provisions may also provide protection for bondholders, but they are not specifically designed for this purpose. Vanilla wrappers are not relevant to this context.

What Are the Conditions Imposed on a Debt Issuer That