Stumped on RX Technicals
hey monkeys, would really appreciate help on any of these.
If a company liquidates but the first lien debt is backed by assets that have a lower value than the first lien debt, what happens to the first lien debt? I understand the first lien debt is impaired/recovery ratio is less than 100%, but is there anything else to mention?
How do you get the corresponding Enterprise Value from bond YTM? if equity is worth nothing...no other info given. I think the intuition is to use trading prices of the bond? no idea...
How do WACC assumptions change depending on the tranches? I get different investors use diff COD (bond YTM, market value of debt, book value of debt) and COE (unlevered or levered beta), but which exactly is used in each tranche?
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