The main thing that protects the debtor's interests is the early redemption clause, which is beneficial to bond issuing companies because it can redeem bonds in advance and reduce financing costs. For example, after the issuance of bonds, the market interest rate continues to decline, resulting in the financing cost of issuing bonds after early redemption is lower than that without early redemption. Generally speaking, however, this clause which is obviously beneficial to the issuing company rarely appears in bonds with ordinary creditor's rights, mainly in convertible bonds. Generally, after the early redemption clause is triggered, the creditor can accelerate the conversion of creditor's rights into equity, otherwise the issuer will be forced to redeem the bonds at a price lower than the market value of the convertible bonds.
If it is a clause to protect the interests of creditors, many times when creditors need to use it, they will find that the protection of these clauses is very limited, even almost fragile. If the debtor takes inventory and fixed assets as collateral, when the company has financial problems, the creditors are likely to find that the debtor's industry is in recession, which will lead to the impairment of related mortgaged assets, that is to say, the mortgaged assets may not be able to effectively and completely protect their creditor's rights. In fact, many times it seems to be a clause to protect the interests of creditors, which is very fragile when encountering problems, but it is only a weight for debtors to increase the credit qualification of bonds for issuance.