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Covenants
The restricted payments covenant has changed unrecognisably as borrowers seek more room for manoeuvre in a downturn.
The trend of deteriorating covenants looms over lenders’ risk protections, yet Asia still ranks top in covenant quality globally.
Unable to force deal sponsors to the table in times of stress, lenders find themselves effectively handcuffed. No wonder the covenant-lite loan remains one of the asset class’s big talking points.
Complacency may have crept into the private debt market. An inevitable change in circumstances will put firms to the test, says Oaktree co-chairman Howard Marks in this video.
What defines the Stateside private credit market in 2019? Our recently published US report identified the following themes.
Can the statistical model that revolutionised a great American sport be applied to private debt? Tom Quimby, managing partner with Tree Line Capital Partners, thinks it can
Whether it is high leverage levels or covenant-lite loans, there are plenty of issues weighing on fund managers’ minds, say Kevin Griffin, CEO and CIO, and Greg Racz, president, of MGG Investment Group
Steven Miller and Jessica Reiss of Fitch Solutions examine the subtle changes to credit agreements that could pose a danger when today’s deals are affected by the next downturn.
The European Leveraged Finance Alliance has sent would-be investors in high yield bonds a questionnaire to encourage issuers to open up on key deal terms.
Who has been benefiting from covenant-lite leveraged loans from Australia this year?