Unlike shares, fixed income instruments, such as bonds, generally provide a known ongoing return (the coupon) and generally preserve capital (principal). While this is the case in the majority of scenarios, companies will at times come under sufficient pressure that they have to renege on their contractual obligations. Deviating from these contractual obligations will typically be considered a default by rating agencies.
However, a default is just the beginning. This update presents three case studies to illustrate some of the many possibilities associated with a company default.
Please see the full update in the document below