Cs. Spatt et Fp. Sterbenz, INCENTIVE CONFLICTS, BUNDLING CLAIMS, AND THE INTERACTION AMONG FINANCIAL CLAIMANTS, The Journal of finance, 48(2), 1993, pp. 513-528
We show that for certain capital structures equity has an incentive to
buy out another claim and alter the firm's investment strategy so as
to maximize the combined value of equity and the acquired claim. This
restructuring may reintroduce agency problems into capital structures
which appear to avoid agency conflicts. By bundling claims, it is poss
ible to avoid this agency problem. The agency problem is also eliminat
ed by dispersed ownership of the claims.