Comp debt question
I'm trying to mark an M&A financing commitment to market. So I went into Cap IQ and pulled fixed income stats on comparable issuances (issuing co has similar Leverage/EBITDA mult, industry, debt maturity, etc…). Now I have a bunch of stat from Cap IQ and I'm trying to figure out how I mark-to-market. Is it just:
Gain(Loss) = -(100 - [Market Price]) * [Total Issuance Amount]
That seems too easy, am I missing something?
[Assume I have an appropriate set of debt comps]
The problem with CIQ transaction screens is that there are very few transactions that report every field. You'll inevitably do a lot of digging around.
I found that Bloomberg prices and a combination of CIQ results tend to be a bit easier to work with than just whatever screening results CIQ spits out.
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