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Covenants

They co-operate but also aggressively compete with each other. But what exactly are they compromising on and fighting over? We take a deep dive into the places where banks meet fund managers.
In a podcast published this week, a leading covenant expert and lender representative insisted private debt has no room for complacency when it comes to fair documentation.
Covenants and leverage are much tighter in loans to sponsors across the region, according to head of APAC private credit Celia Yan.
Fund managers are celebrating their good fortune when it comes to new transactions, while also fearing what might lie ahead for their existing portfolios.
A second survey has backed up an existing one in identifying a declining private debt default rate. The omens for portfolio company performance are promising.
Some of private debt’s safer but lower-returning strategies may face stronger competition as interest rates rise, making opportunistic approaches more compelling. Andy Thomson canvasses the views of investors as the asset class contemplates the challenges of a new year.
As economic conditions become tougher, deal documentation is once again a hot topic. Borrowers are reluctant to cede too much, but lenders are reining back some of their flexibility to pile up more debt. Andy Thomson reports
The flourishing deal market of a year ago is becoming a distant memory as more challenging realities are confronted at the negotiating table.
With a change in market conditions, changes in deal documentation might be expected. But shifts in the balance of power don’t always happen when expected.
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