On December 17, 2007, the Credit Roundtable, an investor group comprised of fixed income investors, issued a white paper that proposes certain model protective
covenants to be included in investment grade deals and addresses certain perceived problems associated with current disclosure. The white paper suggests the following “model” covenants to be included in investment grade indentures to protect bond investors against substantial credit deterioration through voluntary actions of the issuer:
Change of Control
Step-Up Coupons
Limitations on Liens and Priority Debt
Reporting Obligations
Voting by Series
Please see full publication below for more information.