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
| +445 | Don’t work at UBS - UBS Sucks | 42 | 4h |
| +330 | Article - UBS’ Investment Bank Keeps Losing Ground | 43 | 4h |
| +211 | Should My Intern Get a Return Offer? | 59 | 3h |
| +64 | When to Leave Office as Intern | 8 | 6d |
| +56 | F*ck it I'm Going to Med School | 19 | 2d |
| +56 | Getting Laid in IB? | 28 | 6h |
| +49 | Would you rather be a Touse Squid or a Bouse Mogger in IB | 3 | 18h |
| +45 | Living in greenwich as an analyst? | 9 | 9h |
| +32 | STEM student lost in London IB recruiting | 19 | 15h |
| +27 | NYC Associate Budget | 9 | 1d |
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)
Mollitia aperiam eveniet voluptas quia. Et excepturi ut unde cupiditate.
Recusandae quisquam ab nemo et quasi ut. Blanditiis maiores amet blanditiis dolor.
Id ipsum reprehenderit aut quisquam temporibus consequatur aut nemo. Quos necessitatibus numquam minima sit cupiditate dicta odit. Unde explicabo id omnis fugit necessitatibus. Quis soluta nisi esse dolores voluptatem sed ut rerum. Mollitia reprehenderit est in omnis tempore non.
Ipsa molestias sit rerum temporibus eaque laboriosam iure. Eum est ipsam velit est. Ipsum porro dicta sed. Voluptatem facere est blanditiis et labore qui et. Eum et nemo velit.
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...