Seasoned credit investors are painfully familiar with shareholder-friendly actions. Leveraged buyouts, debt-financed share buybacks and special dividends can all deliver nasty surprises to bondholders.
Gavan Nolan, IHS Markit
But idiosyncratic risk works both ways and companies can implement policies that favour bond investors, much to the chagrin of equity holders.
Marks & Spencer is a good example. The UK retailer announced that it was creating a joint venture with Ocado to sell its groceries