The recent wave of US corporate governance reforms is in danger of destroying value for holders of corporate debt, making it easier for activist investors to target companies, Moody’s will warn on Monday.

VIDEO

Francesco Guerrera

on Moody’s report warn­ing cor­por­ate bond­hold­ers of the down­side of cor­por­ate gov­ern­ance reforms

A report by the credit rating agency argues that greater shareholder rights enable corporate raiders and hedge funds to pressurise companies to sacrifice the long-term profits sought by bondholders in favour of short-term fixes to boost the share price.