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 71–80 of 100
  1. 071A microfinance lender securitises a loan pool through pass-through certificates. Size the credit enhancement from expected loss, split it between cash collateral and over-collateral, and name the risks specific to this asset class.Structured finance and securitisationHardMoody'sNew York · 2024
  2. 072Overnight case study: an aviation services company offers a second lien loan behind a larger first lien. Build base and downside cases, compute value cover at 6x and 4x EBITDA, and give an invest or pass view.Private credit and direct lendingHardPrivate creditCredit research
  3. 073A shipping company's loan has a value maintenance covenant. Vessel values fall 30% while the charter keeps paying. Is the covenant breached, and how much must be cured?Asset-backed, project and real-asset lendingCoreCorporate bankingPrivate credit
  4. 074Modelling test: a half-filled debt schedule gives opening balances, rates, the sweep and cash flow, but the sweep, PIK accrual and closing balances are blank and one given line is wrong. Fill it in and find the error.Leveraged finance and LBO financingHardCarlyle GroupNew York · 2023
  5. 075A retailer's pari passu term loan lenders split: a 55% majority swaps into a new super-senior loan and adds new money, leaving the rest behind. Compute each group's recovery before and after the uptier.Liability management and refinancingHardRestructuringLeveraged finance
  6. 076A stressed borrower offers to swap its unsecured bonds, trading at 60, into new secured bonds at 75 of face. If 80% accept, how much debt goes, what do exchanging and holdout holders end up with, and why do holdouts matter?Liability management and refinancingHardRestructuringSyndicate desks
  7. 077You buy mortgage-backed pass-through bonds at 102. How do their average life and yield change if borrowers prepay 10% a year against 25% a year?Structured finance and securitisationCoreStructured creditFixed income asset management
  8. 078A developer needs bondholder consent to sell a subsidiary that a covenant protects, and offers a 0.5% fee for approval. What does it cost the issuer, how should a bondholder decide, and what if the sale weakens the credit?Liability management and refinancingCoreSyndicate desksRestructuring
  9. 079A contractor buys 50 excavators with 90% loans repaid in equal instalments over five years, and the machines lose 30% of their value in year one. Is the loan ever bigger than the collateral, and when?Asset-backed, project and real-asset lendingCoreCorporate bankingPrivate credit
  10. 080A company at 25x earnings issues bonds at 8% to buy back its own shares. What happens to EPS, and what happens to leverage and the rating as bondholders see it?Leveraged finance and LBO financingCoreDeutsche BankSan Francisco · 2025

Company names and figures are illustrative.