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Requirements in the bond contract such as restrictions on financial ratios, dividend policy, reporting requirements, restrictions on issuing debt at a higher seniority level are

Requirements in the bond contract such as restrictions on financial ratios, dividend policy, reporting requirements, restrictions on issuing debt at a higher seniority level are

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Only needed for high yield bond issuers

Known as representations and warranties

Only needed in bonds issued in public markets

Known as covenants

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