Exploring Liability Management Transactions in Lending

Detailed analysis of various liability management transactions (LMTs) like drop down, up-tearing, and double-dip transactions, with examples from companies like J. Crew and Robert Shaw. The chapter highlights the rise in popularity of LMTs among market participants aiming for total return, contrasts their approach with traditional banks, and discusses how recent cases influence lender behavior. Strategies to mitigate risks and challenges in implementing protective measures in lending transactions are also examined.