We analyze corporate financial policies in leveraged buyouts (LBOs) in the presence of default risk. Our model captures the LBO-specific stepwise debt reduction, either with predetermined or cash-flow dependent (cash sweep) principal payments, and thus allows for dynamic redemption. These...

"Other" holdings (OH), including cash, are commonly held in nearly all U.S. equity mutual fund portfolios. This paper investigates the portfolio effects of OH beyond their broad liquidity purposes. I document OH positions in mutual fund portfolios, discovering a surprising correlation between OH...