Courses / Capital Structure / Capital Structure Risk is Cumulative Upgrade AccountYour current access is limited. To continue watching this lesson, you'll need to purchase a subscription. Sign UpCapital Structure Risk is CumulativeRisk in the capital structure is cumulative where the risk of each tranche of capital includes not only the risk imposed by the given tranche but also the risks imposed by all the higher ranking tranches of capital.DiscussionRestricted AccessYou need to sign up for a Lumovest subscription in order to join discussions. Sign UpRestricted AccessYou need to sign up for a Lumovest subscription in order to to download lesson materials. Sign UpCapital Structure 1. What is Capital Structure (3:40) 2. Capital Structure Seniority (4:13) 3. Debt Tranche Name (5:13) 4. Pari-Passu (2:19) 5. Senior Debt vs. Junior Debt (3:11) 6. Contractual Subordination (3:18) 7. Collateral Subordination (3:47) 8. First Lien vs. Second Lien (2:35) 9. Structural Subordination (5:49) 10. Seniority and Cost of Capital (1:11) 11. Key Takeaways on Seniority (3:56) 12. Coupon (3:31) 13. Floating Interest Rate (4:52) 14. Tax Shield on Interest Expense (3:17) 15. Tenor (1:52) 16. Mandatory Amortization (2:02) 17. Optional Repayment (3:32) 18. Refinancing Risk (2:21) 19. Bullet Repayment (1:12) 20. Leverage Multiples (2:01) 21. Capital Structure Risk is Cumulative (4:38) 22. Coverage Multiples (1:20) 23. Three Types of Covenants (3:13) 24. Maintenance Covenants vs. Incurrence Covenants (2:22) 25. Revolving Credit Facility (RCF) (5:30) 26. Revolver Interest Rate (4:17) 27. Loan (2:38) 28. Bond (1:39) 29. Mezzanine (5:49) 30. Equity (3:15) 31. Connecting Dots (3:07)
