Ahmed Yacout
Ahmed is an associate in Freshfields’ global transactions group with a particular focus on high yield bond offerings. Ahmed regularly represents issuers, underwriters and creditors in connection with high-yield and investment grade bond offerings, equity offerings, debt restructurings and LBO financings.
Practice Area
Panel
- Contributing Author
Qualified Year
- 2023
Qualifications
- Bachelor of Arts in History and Political Science (2017)
- Juris Doctor (2021)
Education
- New York University Abu Dhabi (2013-2017)
- New York University School of Law (2018-2021)
1 Contributions by Ahmed Yacout
PRACTICE NOTES
Key features of investment-grade, high-yield and crossover bonds: yields, covenants, maturities, guarantees and regulatory considerations
What are investment-grade, high yield and crossover bonds?
Investment grade (IG) bonds are debt instruments that hold an IG credit rating: BBB and above on the S&P and Fitch scales, and Baa3 and above on the Moody’s scale (for further detail on credit ratings, see Practice Note: Credit ratings). IG issuers are usually sizeable blue‑chip corporates—well‑known, well‑established and well‑capitalised—and are often companies with shares listed on a major stock exchange. Aside from sovereign bonds of developed markets, IG securities are widely regarded as among the safest income‑generating investments. As a consequence of this perceived safety, IG bonds tend to offer lower yields than high yield (HY) bonds. Many institutional investors and pension schemes operate policies and mandates that constrain their bond holdings to assets with, on average, lower default risk, such as IG instruments or government obligations. In broad terms, HY bonds encompass all bonds from issuers rated below IG. HY issuers may include public companies that lack (or previously had but later lost) an IG rating, private companies or acquisition...
Banking & Finance
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