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
10 min read · 03 February 2020
The restricted payments covenant has changed unrecognisably as borrowers seek more room for manoeuvre in a downturn.
3 min read · 30 January 2020
The trend of deteriorating covenants looms over lenders’ risk protections, yet Asia still ranks top in covenant quality globally.
3 min read · 15 January 2020
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.
2 min read · 09 January 2020
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.
1 min read · 16 October 2019
What defines the Stateside private credit market in 2019? Our recently published US report identified the following themes.
3 min read · 05 September 2019
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
6 min read · 02 September 2019
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
5 min read · 02 September 2019
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.
5 min read · 01 July 2019
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.
2 min read · 18 June 2019
