Debt Capital Markets case studies, worked step by step

Cases
100
Traced to a firm
34
Topics
12
Hard
30
Topic
All topicsPrivate credit and direct lending8Debt capacity and loan structuring9Bond issuance and execution9Credit analysis and ratings12Asset-backed, project and real-asset lending8Structured finance and securitisation9Leveraged finance and LBO financing11Capital structure decisions6Rates and hedging8Liability management and refinancing8Indian debt market execution5Restructuring and recoveries7
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 11–18 of 18 · filtered from 100Clear filters
  1. 056A tea estate company needs Rs 50 crore for three years. Is a floating bank term loan at 10.2% or a privately placed NCD at 9.6% with Rs 30 lakh of issue costs cheaper, and what else matters?Indian debt market executionWarm upIndian debt capital markets
  2. 060A plastics company is sold for Rs 300 crore. It has secured debt, unsecured debt and preference shares. What does each class recover?Restructuring and recoveriesWarm upRestructuringCorporate banking
  3. 062A company issues Rs 300 crore of three-year bonds at 8.40% and pays an arranger fee plus rating, trustee and listing costs. What is its all-in cost of funds?Bond issuance and executionWarm upIndian debt capital markets
  4. 066Case interview: a fast-growing pet food company asks for a loan that takes leverage to 3.0x EBITDA. Is it a good business to lend to, and what would you check first?Private credit and direct lendingWarm upPrivate creditCredit research
  5. 087A debut hospital issuer would be rated A on its own. A parent guarantee costing 0.5% a year would lift it two notches and save 70 basis points of coupon. Is the guarantee worth buying on a Rs 400 crore five-year bond?Bond issuance and executionWarm upSyndicate desksRating agencies
  6. 089A sponsor asks for 6x leverage at 11% on a schools business with EBITDA of Rs 100 crore, maintenance capex of Rs 30 crore and cash taxes of Rs 10 crore. Is 6x serviceable, and what is the most you would lend?Leveraged finance and LBO financingWarm upLeveraged financePrivate credit
  7. 098A bank holds Rs 5,000 crore of government bonds with a modified duration of 5 in a mark-to-market book. Yields rise 60 basis points. What is the loss, and what does it do to a Rs 800 crore capital buffer?Rates and hedgingWarm upRisk managementFixed income asset management
  8. 099A two-wheeler loan pool yields 14%. The senior bonds pay 8.5% on 85% of the pool, servicing costs 1% and expected losses are 2.5%. How much excess spread is there, and what does it protect?Structured finance and securitisationWarm upStructured creditRating agencies

Company names and figures are illustrative.