Wharton Lecture: Why Due Diligence is Essential in Credit Investing

Wharton Credit Investing

Wharton Lecture: Why Due Diligence is Essential in Credit Investing

Street Diligence Founder & CEO, Stephen Hazelton, returned to Wharton as a guest lecturer.  The seminar was hosted by Wharton’s Restructuring & Distressed Investing Club and was attended by numerous first and second-year MBA students.

Stephen focused on the importance of the corporate structure and covenant analysis in determining default risk, recovery rate and potential returns. He highlighted the importance of covenants in high yield bond indentures and bank loan credit agreements.  The lecture concluded with walking through real-world case studies and demonstrating the complexities of these cases.  Stephen also demonstrated how utilizing the corporate structure tool can be a valuable resource in the due diligence process.

Wharton was established in 1881 and is the first collegiate school of business.