High-Yield Bonds in Asia - What Every Issuer Needs to Know (Part 3: Limitation on Indebtedness Covenant) | 见解

Understanding how debt covenants work and how to navigate them ensures that a high-yield bond is tailored to the needs of both investors and the issuer.

Our four-part multimedia series, “High-Yield Bonds in Asia: What Every Issuer Needs to Know,” offers practical insights on high-yield debt for Asia-based issuers seeking to understand important covenants and trends.

In our last video, we explained the general principles of a high-yield covenant package and the issue of structural subordination.

In this third video of our series "High-Yield Bonds in Asia - What Every Issuer Needs to Know,” Mayer Brown partner Jason T. Elder discusses one of the most important covenants, the debt covenant, including its purpose, ratio debt and permitted debt exemptions.