OECD warns over ‘aggressive interpretation’ of bond covenants

first_imgThe growth of non-bank lending and activist hedge funds in the fixed income space must be followed by the emergence of “informed and motivated” bond holders if smaller companies are to continue borrowing, the OECD has suggested.In a paper charting the development of the corporate bond market since 2000 – in which the authors found a 600% increase in non-investment grade debt over the following 13 years – the OECD noted the recent emergence of activist investors pursuing an “aggressive interpretation of established bond covenants”.The authors noted that such investors – often hedge funds – filed default notices for even the most minor covenant violation, only to then negotiate even more favourable terms. “This kind of bondholder engagement, aiming at windfall gains, is a departure from the traditional role of large institutional bondholders who usually limit their engagement to governing the risk and participating in restructurings and recovery of losses.” The OECD noted that the differing approaches were of course down to the business models employed by investors – the long-term approach favoured by pension funds compared to the more short-termist hedge fund business model.“It remains to be seen if larger and more mature bond markets will develop a middle ground between total passivity and aggressive activism.“In an era of non-bank financial intermediation, the formation of such a community of informed and motivated financiers may be of particular importance for supporting the critical segment of medium-sized growth companies,” the paper said.The authors also noted that investors had gradually come to accept a greater number of high-yield bonds, with “less stringent” covenants becoming a more common feature.The increased risk appetite is backed up by a recent survey that found record issuances of high-yield debt in Europe.For more on high-yield bonds, read IPE’s previous coverage of the market,WebsitesWe are not responsible for the content of external sitesLink to OECD paper ‘Corporate Bonds, Bondholders and Corporate Governance’last_img read more

Women’s hoops falls short in last-minute effort vs. Cal

first_imgFacing two tough Pac-12 teams this past weekend, the women’s basketball team had to battle both to the bitter end. Clashing with Stanford on Friday and then quickly turning around to face No. 21 Cal on Sunday, the Trojans ultimately fell to both in the last two minutes of play.Graduate student guard Jordan Adams recorded 10 rebounds in the Trojans’ match against the Cal Bears on Sunday. Sunny Dong | Daily Trojan“I thought it was a well-played offensive game,” head coach Mark Trakh said. “I am very happy with the effort of my team and very happy with Minyon’s effort tonight. We’re on the road right now, we’re 3 and 5 and we’ve got to figure out a way to get back to .500.”Taking on Cal is certainly no easy task, especially when Cal’s starting center, junior Kristine Anigwe, is widely considered to be one of the best players in the country. Averaging 17.9 points and 8.8 rebounds a game, Anigwe is strong on the boards and at the 3-point range. Even with an impressive game of 20 points, the Trojans’ strong defense was able to keep her to only 3 points in the second quarter and two rebounds in the first half before she would foul out in the fourth quarter.“We wanted to go inside,” Trakh explained. “I thought Kristen did a good job on her with the help Minyon went down and stole the ball a couple of times, but she is obviously a great player and that was big for us to stay in the game and getting her into foul trouble.”The Trojans’ defense has been strong throughout the season, but stood out in their games this weekend even with the losses. With 19 steals and 13 blocks total from the weekend, the team kept its opponents on their toes. More impressive though is the fact that four of the Trojan starters ­— guards sophomore Minyon Moore, senior Sadie Edwards and junior Aliyah Mazyck, with forward senior Kristen Simon — played 78-80 minutes of two 40-minute games and were still able to fight until the very end.“I think that since we don’t have a deep, deep bench, I think our starting five is doing a really good job,” Moore said. “And even though we are fatigued we are playing through it because we take it game by game and it’s not about yourself, we play for our team.”Trakh shared his opinion on the Trojans’ strengths.“We think we’re a defensive team,” Trakh said. “We wind up holding them to 62 points. I mean we really did a good job in the second half and they scored 27 points in the second half, so that is a pretty good defensive effort from us. We bring our defense all the time, bring it on the road, bring it home, but I think we’re doing a good job on the defensive end.”With both games coming down to the wire, it was Mazyck and Moore who would stood for the Trojans. Mazyck continued to prove herself a force to be reckoned with on the court, after getting down early in the first quarter against Stanford. She went on to make three 3-pointers in a row, changing the lead and the momentum of the game to allow her team back into the fight. Then, on Sunday, Moore led the charge against Cal with 19 points, three steals and two blocks.“Aliyah is having a great year and she is doing a great job for us so we’re really proud of the effort she is making, as I am of all the kids,” Trakh said.Overall, the weekend may not have ended the way USC wanted but in both games, the team fought hard throughout and never backed down.last_img read more

NIKE Receives Three Million Orders for Eagles’ Jerseys

first_imgBoth organisations used the opportunity to appraise their running partnership agreement, signed in London three years ago, and while both expressed satisfaction with the contract performance, the imperative of penning a new, improved contract was high on the agenda.“The meeting was at the instance of NIKE. The company’s representatives at the meeting expressed delight with the performances of the various National Teams since they came on board and we both agreed that it was time for a much bigger contract. That would be actualized very soon.“The new Super Eagles’ jerseys will be released into the global market, including several NIKE shops across Nigeria, on 29th May 2018, just before the Eagles fly out to London for the friendly match against England. The cost would be $85 for one,” Dikko told thenff.com.In the three years of NIKE’s initial sponsorship agreement with the NFF, the U17 National Team (Golden Eaglets) have won a fifth FIFA U17 World Cup; the U23 National Team (Olympic Eagles) have won bronze at the Men’s Olympic Football Tournament; the Senior Women National Team (Super Falcons) have won an eighth Women Africa Cup of Nations; the Super Eagles B have achieved a record runner-up position at the African Nations Championship and; the Super Eagles have qualified for the Russia 2018 FIFA World Cup (Nigeria’s sixth appearance) from a so-called ‘Group of Death’ in the African series.“In our discussions, we explored a lot of possibilities going forward. We talked about the forthcoming FIFA World Cup finals in Russia and the preparation of the U20 girls (Falconets) for this year’s FIFA U20 Women’s World Cup in France, among other issues,” Dikko added.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram Explores new contract with NFFAmerican sportwear giant, NIKE, thursday disclosed that it had received over three million orders for the new jerseys designed for the Senior National Team of Nigeria, Super Eagles, for the 21st FIFA World Cup finals opening in Russia in exactly four weeks.At a meeting with chieftains of the Nigeria Football Federation at its Europe headquarters in Amsterdam, Netherlands, the sportswear behemoth also used the opportunity to announce that the much-anticipated release of the jerseys into the global market would happen on Tuesday, 29th May, at unit cost of $85.President of the Nigeria Football Federatiob, Mr. Amaju Melvin Pinnick attended the meeting in company with NFF 2nd Vice President/LMC Chairman, Mallam Shehu Dikko, who is also Chairman of the NFF Marketing, Sponsorship and TV Rights Committee. NIKE’s Vice President/General Manager for Europe, Middle East and Africa, Matthus Visch was in company with Sales Director, Mr. Wouter van Olm.last_img read more