Imagine that you are a corporation and that you want to go ahead and raise funding for a new venture. You believe that the venture will be amazing and that it will bring in great returns, you even think that you will be able to take your company to the next level with these returns but you also know that it will not be easy, you know that you will have to clean up your balance sheet and make sure that you are presentable. Learn more about James Dondero at High Yield Credit.
Why do you want to make yourself presentable?
Well, you want to make sure that you don’t have to pay a higher rate to raise funds, you know that the riskier you seem to be, the more that you have to pay to your credit holders, to minimize this outcome, you take steps to minimize the costs of the issuance of the debt.
You really want to do this project and you know that you can do it well, all you have to do is just take the right steps to be as presentable as possible.
You want to fall in the AAA, AA, A bucket.
So what do you do? You look at your current business model and you look at your financial statements, you look to see if you have the ability to do well if the market goes south, you can tell this in a more easy manner, the numbers in your financial statements shouldn’t lie. You want to check and see how sensitive your financials are to changes in the market.
Then you look at how you can fine-tune your operations to trim down your liabilities and shore up on your assets.
James Dondero Does the Analysis
James Dondero and his team at Highland Capital Management does the work for you, all you have to do is allocate your capital, and keep up with James Dondero and his team. Read more about James Dondero at Nexpoint Advisors.