000			01993cam a22003137 4500
001			w3390
003			NBER
005			20211020114738.0
006			m o d
007			cr cnu||||||||
008			210910s1990 mau fo 000 0 eng d
100	1		_aKaplan, Steven N. _913958
245	1	0	_aHow Risky is the Debt in Highly Leveraged Transactions? Evidence from Public Recapitalizations / _cSteven N. Kaplan, Jeremy C. Stein.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1990.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w3390
500			_aJune 1990.
520	3		_aThis paper presents estimates of the systematic risk of the debt in public leveraged recapitalizations. We calculate the systematic risk of the debt as a function of the difference between the systematic equity risk before and after the recapitalization. The increase in equity risk is surprisingly small after a recapitalization, ranging from 28% to 52% depending on the estimation method. Under the assumption that total company risk is unchanged, the implied systematic risk of the post-recapitalization debt in twelve transactions averages 0.67. Under the alternative assumption that the entire market adjusted premium in the leveraged recapitalization represents a reduction in fixed costs, the implied systematic risk of this debt averages 0.42.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
700	1		_aStein, Jeremy C. _921153
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w3390.
856	4	0	_uhttps://www.nber.org/papers/w3390
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w3390
942			_2ddc _cW-PAPER
999			_c345120 _d303682