True or false
Briefly explain in each case.
a. Lenders in project financings rarely have any recourse against the project’s owners if the project fails.
b. Many new and exotic debt securities are triggered by government policies or regulations.
c. Call provisions give a valuable option to debt investors.
d. Restrictive covenants have been shown to protect debt investors when takeovers are financed with large amounts of debt.
e. Privately placed debt issues often include stricter covenants than public debt. However, public debt covenants are more difficult and expensive to renegotiate.