When assessing the risk–reward profile of a bond issue, investors should be informed by the content of the indenture. They should pay special attention to their rights in the event of default. In addition to identifying the basic bond features described earlier, investors should carefully review the following areas:

• the legal identity of the bond issuer and its legal form;

• the source of repayment proceeds;

• the asset or collateral backing (if any);

• the credit enhancements (if any); and

• the covenants (if any).