Series: How to Read a Bond Indenture — A Value Investor’s Framework Introduction Equity investors worry about how management allocates capital.Bond investors worry about how management extracts capital. Once you lend money to a company, your upside is capped. Your return is contractual. That means your entire game is about preventing behavior that increases downside. … Continue reading Post #3 — Negative Covenants: How Indentures Protect You From Managerial Value Extraction