Capital Markets (ECM / DCM)
What is a 'dividend recap' bond, and why do investors demand wider spreads for it?
Model answer
A dividend recapitalization is a debt issuance whose proceeds fund a distribution to the company's equity owners (typically a PE sponsor) rather than reinvestment in the business. It's…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Capital Markets (ECM / DCM)
- Why does a company go public (IPO)? Give the main pros and cons.
- Walk me through the IPO process from start to finish at a high level.
- What is bookbuilding and how does the roadshow feed into it?
- How is the final IPO offer price determined?
- Why are IPOs often deliberately underpriced?
- What is the greenshoe (over-allotment option) and how does it work mechanically?