Covenants

A new reporting guide will divide the companies that are keen to impress with their transparency from those uncomfortable under the spotlight.

Looser debt covenants could allow an increasing number of rated Chinese property companies to take out even more debt, says a Moody's report.

The outbreak of the virus is the trigger for the pain likely to be suffered by many lenders and investors. But Gregory Racz of MGG Investment Group says the roots of this pain were to be found in poor deal structuring.

Although valuations are unlikely to fall in the short term, managers should be wary of expecting a rapid recovery in the global economy.

Debt funds and their portfolio companies have grown used to tapping cheap debt facilities, but underperformance amid the covid-19 crisis may see access to finance restricted.

What are the key issues facing lenders in the face of global pandemic? Four partners from Ropes & Gray share their thoughts on issues ranging from MAC clauses to covenant defaults.

With bond and loan issuance having been brought to a crashing halt by the coronavirus crisis, Sabrina Fox says weak covenants will be equated with weak governance.

There is light at the end of the tunnel for the private debt market as long as it learns from past crises, argues Gabriella Kindert of Mizuho Europe.

Private debt professionals have frequently shared the view that the good times couldn’t last forever. Amid the global spread of coronavirus, they are set to be challenged as never before.

Fewer covenants can provide greater flexibility in dealing with portfolio company difficulties, but they may also prevent lenders from negotiating rescue plans with borrowers and sponsors. Andy Thomson and Andrew Hedlund investigate