When you have a bond you're exposed to the entire corporate structure too. What the board does affects you a lot. Except your contract is (sometimes) much more

When you have a bond you're exposed to the entire corporate structure too. What the board does affects you a lot. Except your contract is (sometimes) much more complicated. The primary reason why they want covenants is because credit holders do not get to influence management (except in Chapter 13, when they basically take over the company).