Do the sorts of shareholder activist whom we so often discuss in these entries -- hedge funds that use proxy fights as a way to nake a profit on their minority stock holdings -- have an impact on the bondholders of the companies they fight over? And if so: what is that impact?
This is the question asked by two scholars at the University of Houston: Hadiye Aslan and Hilda Maraachlian in this paper.
The answer seems to be that for most types of bonds and for most types of activist strategies, there is no net effect. For weakly protected bonds, and for the shortest time-horizon variabnts of strategies, there is a negative impact on bondholders.
I just thought I'd put this out there today.
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