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 1–7 of 7 · filtered from 100Clear filters
  1. 012Ekavira Malls buys a three-year 9% interest rate cap on Rs 500 crore of floating debt for a 1% upfront premium. If the benchmark goes to 10.5% for a year, what does the cap pay, and at what rate does it break even?Rates and hedgingWarm upCorporate banking
  2. 014Mervon Hotels has Rs 2,000 crore of floating debt at benchmark plus 250 basis points, EBITDA of Rs 480 crore, and the benchmark at 6.5%. What does a 200 basis point rise do to interest cover, and what does swapping half into fixed at 7.4% change?Rates and hedgingCoreCorporate bankingLeveraged finance
  3. 020The syndicate desk is left with Rs 200 crore of unsold Pavanjit Steel seven-year bonds overnight and hedges with government bond futures. Overnight, government yields fall 10 basis points and Pavanjit's spread widens 15. What is the hedged P&L?Rates and hedgingHardSyndicate desksRisk management
  4. 035Sitanshu Pharma has a USD 100 million five-year loan and earns mostly in rupees. The rupee weakens 8%. What does that cost unhedged, and how does it compare with a hedge costing 2.5% a year?Rates and hedgingWarm upCorporate bankingSyndicate desks
  5. 051A state power utility borrows floating from banks and wants a fixed cost for five years. Should it swap the loan to fixed or refinance with a state-guaranteed fixed bond?Rates and hedgingCoreCorporate bankingIndian debt capital markets
  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. 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

Company names and figures are illustrative.