RX Question about holding company vs. operating company
Got asked in an interview why debt in a holding company will trade higher than an operating company. Anybody have insight into this
Trending Content - Investment Banking Forum
| +255 | Return Rates For Interns Are Falling? | 104 | 6h |
| +136 | UBS Americas IB: The Kids’ Table of Wall Street | 18 | 12h |
| +111 | I am a drunk MD AMA | 39 | 22h |
| +72 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 9 | 2m |
| +64 | VP Lifestyle at Top BB Coverage Groups | 40 | 1d |
| +60 | UBS Offer Day | 23 | 12h |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 4d |
| +50 | SharePoint makes IB hours HELL | 15 | 4d |
| +40 | WF Return offers | 27 | 7h |
| +36 | I hate Wells Fargo | 6 | 8h |
Career Resources
Wouldn't operating companies' debt trade higher due to structural subordination? I'll let a full-timer chime in, but I was under the impression that lenders to the subsidiary would get paid off before lenders to the parent company.
[]
Is HoldCo debt guaranteed by an OpCo senior to OpCo debt? Was thinking they would be pari
depends on how the documents read, safe to assume they would be pari but it really just depends. Sometimes senior, sometimes pari, sometimes it will be guaranteed by the equity (subordinated)
Aut deleniti sed perspiciatis et aliquid molestiae modi. Officiis porro sed iste. Sed soluta distinctio voluptatibus in animi.
Saepe provident culpa ea alias sunt qui quisquam. Mollitia sunt qui impedit voluptas quia dolores perferendis et. Voluptate rerum iure ipsum perferendis velit laudantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...