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On the Moody's sheet for every corporate bond I've seen there is a line that states whether the debt has support (Y or N). Can anyone tell me what this means or point me in the direction to find out? Thanks!

Info box from bond sheet

Here are some examples of issues with and without support, by CUSIP:

105340AL7, 20030NAR2, 94106LAS8, 199575AW1 (with support)
927804FF6, 26442CAD6, 11102AAA9, 118230AG6 (without support)

It looks like most (3/4 examples) of those with support were issued by companies that "were previously known as" something else. That's at least some new information!

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Most likely it means that the bond has another guarantor (such as a parent company) who could make payments if the obligor is not able to. Typically this is done to increase the credit rating of the bond.

Based on the CUSIPs you posted, the ones "with support" all have a separate entity as guarantor, which looks to be a parent company or other related entity. Or perhaps the subsidiary was spun off but the bonds kept the original issuer as a guarantor.

  • Thanks for the comment, I just added some CUSIP references with and without support. It looks like the majority of those with support were issued by companies that then changed names for one reason or another. – Anger Density Jun 20 '17 at 15:46
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    @AngerDensity I don't think it's a name change - I think the guarantors are parent companies that guarantee the loans for their subsidiaries. – D Stanley Jun 20 '17 at 15:57

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