Why Would A Pe Firm Prefer High-yield Debt Instead?

1.	Why Would A Pe Firm Prefer High-yield Debt Instead?
Answer» If the PE firm intends to REFINANCE the company at some POINT or they don't believe their returns are too SENSITIVE to interest payments, they MIGHT use high-yield debt. They might also use the high-yield option if they don't have plans for major expansion or selling off the company's assets. If the PE firm intends to refinance the company at some point or they don't believe their returns are too sensitive to interest payments, they might use high-yield debt. They might also use the high-yield option if they don't have plans for major expansion or selling off the company's assets.

Answer»

If the PE firm intends to REFINANCE the company at some POINT or they don't believe their returns are too SENSITIVE to interest payments, they MIGHT use high-yield debt. They might also use the high-yield option if they don't have plans for major expansion or selling off the company's assets.

If the PE firm intends to refinance the company at some point or they don't believe their returns are too sensitive to interest payments, they might use high-yield debt. They might also use the high-yield option if they don't have plans for major expansion or selling off the company's assets.

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