Over the past several months, Stephen Sawyier has been exploring various platforms that provide covenant and debt-related analyses for debt investors. Unlike the far more elaborate analyses required by funds operating in the arbitrage arena, these analyses are straight forward, although certainly important in terms of credit approvals at the buying fund.
In the municipal derivative area, for example, an analysis might include items such as: the nature of the underlying obligation (joint action agency, revenue pledge, GO, tax increment, etc.), priority of lien for a particular issue of net revenue pledge bonds (as well as related issues such as applicable limits on prior lien bonds, if any, applicable placement in security waterfall of different payment obligations represented by the bonds, etc.) and the like.
In the taxable area, subordination terms, conversion provisions, cross defaults provisions, etc. are examples.
Having advised clients for many years with regard to these exact issues, Mr. Sawyier can provide advice based on a very broad experience with virtually all forms of debt and do so for a price for service significantly less than the hourly rate of large Red Book or other firms.
Mr. Sawyier’s current primary areas of expertise include:
- Municipal and Public Finance
- Corporate and Structured Finance
- Start-ups and Ventures