Bondbolder Losses in Leveraged Buyouts Table 2 Publicly traded nonconvertible LBO debt securities in our sample CUSIP Issuer Event date Maturity date Coupon 1019519AE Allied Stores 09/04/1986 05/15/1992 6.000 2077851AA Bell Howell 11/25/1987 07/01/1996 8.875 3099725AD Borg Warner 10/31/1986 04/01/1996 8.000 4121691A4 Burlington Ind 04/27/1987 07/15/1990 4.750 121691AC Burlington Ind 04/27/1987 08/15/1995 9.000 121691AD Burlington Ind 04/27/1987 08/01/1990 11.250 5196864AC Colt Ind. 03/11/1988 10/15/2001 12.500 6302491AC FMC Corp 02/22/1986 10/01/2001 7.500 302491AE FMC Corp 02/22/1986 01/15/2000 9.500 7314099AC Federated Dept 01/22/1988 06/15/2010 10.250 314099AE Federated Dept 01/22/1988 05/01/2013 10.625 314099AU Federated Dept 01/22/1988 12/15/1996 7.875 314099AK Federated Dept 01/22/1988 11/01/1992 9.375 8859370AD Fruehauf Corp 03/27/1986 02/15/1996 9.750 9521894AD Lear Siegler 10/30/1986 10/21/1991 11.750 10522066AC Leaseway Transp 11/14/1986 03/15/1989 12.500 11597715AC Midland Ross 06/10/1986 02/15/2007 6.000 12629527AA Nabisco 10/21/1988 05/01/2001 7.750 74960LAC RJR Nabisco 10/21/1988 01/15/2007 8.000 74960LAD RJR Nabisco 10/21/1988 02/01/2017 8.375 74960LAE RJR Nabisco 10/21/1988 03/15/2017 8.625 74960LAG RJR Nabisco 10/21/1988 01/15/1995 8.875 74960LAH RIR Nabisco 10/21/1988 02/15/1996 8.625 74960LAI RJR Nabisco 10/21/1988 03/01/1998 8.875 74960LAK RJR Nabisco 10/21/1988 04/15/1991 8.125 74960LA1 RJR Nabisco 10/21/1988 05/01/1995 9.250 74960LAM RJR Nabisco 10/21/1988 11/15/1992 8.875 761753AK Reynolds RJ Ind 10/21/1988 08/01/1993 10.750 761753AM Reynolds RJ Ind 10/21/1988 04/01/2016 9.375 761753AQ Reynolds RI Ind 10/21/1988 04/15/1989 6.875 761831AD Reynolds RJ Tob 10/21/1988 09/01/1994 7.875 13690734AC Owens Corning 08/27/1986 05/01/2010 12.000 690734AD Owens Corning 08/27/1986 12/15/2005 9,500 14690768AB Owens Illinois 12/12/1986 04/01/2001 7.625 690768AE Owens Illinois 12/12/1986 11/01/1999 9.350 15761338AA Revco D.S. 03/17/1986 08/15/2015 11.750 761338AB Revco D.S. 03/17/1986 10/01/1995 11.125 16933169AE Walter Jim Corp 07/17/1987 02/01/1997 7.875 933169AG Walter Jim Corp 07/17/1987 02/01/1996 9.500 933169AJ Walter Jim Corp 07/17/1987 02/01/1993 13.125 933169AM Walter Jim Corp 07/17/1987 01/15/2005 13.250 933169AN Walter Jim Corp 07/17/1987 01/15/2006 11.000 933169AP Walter Jim Corp 07/17/1987 04/01/2016 9.500 The 43 bonds listed here represent all bonds traded at Lehman Brothers over the period January 1985 through April 1989 that were issued by firms involved in a leveraged buyout and that had a consecutive time series of dealer quotes available around the month of the buyout announcement. that LBOs had no effect,the average risk-adjusted debt return should be zero.The Appendix describes the methods of adjusting returns in greater detail. 1.4 Additional data We obtained unadjusted and market-model-adjusted equity returns from CRSP's daily NYSE-AMEX file (all our firms were traded at the NYSE before their LBO).The market model uses the value-weighted 969