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 91–100 of 100
  1. 091Paper LBO with a revolver, a cash sweep and a PIK note: build the debt schedule for a packaging company bought at 8x and work out the sponsor's return.Leveraged finance and LBO financingHardCarlyle GroupNew York · 2023
  2. 092A steel company is in insolvency resolution. A bidder offers Rs 2,400 crore upfront plus Rs 600 crore deferred over three years. What is the bid really worth, and how might it be shared among secured, unsecured and operational creditors?Restructuring and recoveriesHardRestructuringIndian debt capital markets
  3. 093A gold loan company runs a public NCD issue with a base of Rs 100 crore and a Rs 400 crore green shoe, three series and four investor categories. Retail is three times subscribed. Work out allotments and the weighted cost of funds.Indian debt market executionCoreIndian debt capital marketsSyndicate desks
  4. 094Evaluate a five-year secured bond from a logistics company at 10.25% and identify all the relevant risks: EBITDA Rs 180 crore, debt Rs 720 crore, one customer at 38% of revenue and a heavy warehouse lease book.Credit analysis and ratingsCoreNuveenChicago · 2025
  5. 095A defaulted textile company's bonds trade at 42. Recovery in 18 months is 30, 55 or 80 with probabilities of 30%, 50% and 20%. What is the expected recovery, and what annual return does buying at 42 imply?Restructuring and recoveriesCoreRestructuringFixed income asset management
  6. 096A lender makes three-year fixed-rate loans funded with one-year borrowings. Rates rise 150 basis points. What happens to net interest income, what is the duration gap, and how would you change the funding?Rates and hedgingHardRisk managementIndian debt capital markets
  7. 097Value a construction company and decide whether to lend to it: a Rs 9,000 crore order book and Rs 330 crore of EBITDA, but only Rs 420 crore of operating cash flow over five years against Rs 1,500 crore of cumulative EBITDA. It asks for a Rs 300 crore facility.Credit analysis and ratingsHardBain CapitalNew York · 2024
  8. 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
  9. 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
  10. 100Two borrowers each have revenue of Rs 1,000 crore, EBITDA of Rs 150 crore and debt of Rs 450 crore. One has half its costs fixed, the other a tenth. Revenue falls 20%. What happens to each, and what does operating leverage mean for the lender versus the shareholder?Credit analysis and ratingsCoreOaktree Capital ManagementLos Angeles · 2024

Company names and figures are illustrative.