, which was published in the Harvard Law School Forum on Corporate Governance and Financial Regulation.
As such, this subset of investors — known as"net-short debt activists" — are incentivized to hasten a corporation's default. Here's a quick rundown of how they operate:: Net-short debt activists identify a transaction that they can claim violates specific covenants in a company's debt documents.: Those activists build a position in the company's debt, while also amassing a larger short position.
The Wachtell Lipton study agrees with that last point: This type of behavior is becoming more commonplace. As a result, it's become a growing worry for many companies whose existing debt deals could contain troublesome covenants — ones that could be dug up and used against them.
Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más:
Isn’t that just an investor that subscribes to the principals of shortselling? And hasn’t that alway been a thing?
Colombia Últimas Noticias, Colombia Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Activist Investor Claims Insurer’s CEO Uses Company Assets to Support LifestyleVoce Capital says Argo Group’s board is letting its chief executive misuse company assets on jet trips, designer office chairs and other expenses. The investor plans to launch a proxy fight against the company, which says its performance remains strong. This guy is crazy to think that corporations don't exist solely for their CEO's profits. Just kidding. I love a responsible businessman. WTG Voce.
Fuente: WSJ - 🏆 98. / 63 Leer más »
Food-delivery company Doordash valued at $7.1 billion in new fund-raising roundThe company faces formidable competition from GrubHub, Postmates and Uber Eats, but CEO Tony Xu says the company will continue to focus on growth and delay profitability. 🤣 they can’t even get the orders right. And it’s picking up food. Literally anyone can do it.
Fuente: CNBC - 🏆 12. / 72 Leer más »
Cannabis producer Tilray is making a big bet on the world's largest hemp food companyThe Canadian marijuana-producer Tilray announced Wednesday that it is close to acquiring Manitoba Harvest, the world's largest hemp food company.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »
Even the best stock-market investors fail when it’s time to sellEven the best stock-market investors fail when it’s time to sell (via MktwHulbert)
Fuente: MarketWatch - 🏆 3. / 97 Leer más »