WATCH: Why borrower optimism should be a cause for concern

James Newsome of Arbour Partners explores the significance of high leverage and covenant erosion in a three-minute video.

With people saying it’s an “incredibly attractive” time to be a borrower, James Newsome, managing partner of European placement agent Arbour Partners, wonders whether that means it’s a worrying time to be a fund manager or investor. Newsome reflects on the lack of covenants, high leverage, echoes of 2007 – and whether high levels of equity in deals may provide debt providers with a safety net.