‘Pockets of crazy’ was what one credit fund manager, speaking at a panel at the Private Debt Investor Forum in New York this week, called the cropping up of covenant-light loans and rumors about lending standards deteriorating. While the general mood and buzz around the conference, and seemingly in the industry overall, was thoroughly optimistic, debt fund managers, alternative lenders and BDCs did say they were concerned about a number of things: further erosion of lender discipline, the fact that some of this looks unnervingly similar to pre-market-crash 2007-2008 excesses, uncertainty about bank regulation and potentially too many new...
Friday letter: Pockets of crazy
Cov-lite isn’t a widespread feature of the private debt market – yet.
