Find situations where business valuation exceeds debt obligation.
“…in situations where we believe there is strong business valuation coverage of debt obligations…”
Every month Geoff Castle, Portfolio Manager of the Pender Corporate Bond Fund, writes a commentary covering the challenges and opportunities in the Fund. Each commentary includes highlighted holdings, and their key characteristics, often with reference to coverage.
“… things like coverage factors…does the company generate substantial margin of EBITDA versus interest or EBIT versus interest or free cash flow versus interest, is there a strong interest coverage that comes from internally generated cash flow. It’s one of the more highly weighted factors we have in the piece.