Nowhere is the old adage “cash is king” more appropriate than in the world of leveraged loans. Great effort is expended on analysing target businesses and figuring out ways of squeezing the maximum level of debt into them within the limits of the expected cash flows. Yet to certain members of the buy side community, this doesn't necessarily appeal.
When cash isn't king
Leveraged loans in Europe are being repaid earlier than ever at the moment. This is causing problems for managers of collateralised loan obligation funds. Deal Mechanic explains why
