Leveraged investor protection “crushed” amid rampant demand



Companies leveraging the $ 1.2 trillion leveraged market are leveraging strong demand for the floating rate asset class to weaken critical covenantswhich traditionally protect creditors.

At the start of the year, new leveraged loans to private-backed firms did not allow immediate payment of unlimited dividends or investment walks without a significant reduction in leveraged capital.

Six months later, 75% of these loans could not stop them from channeling funds to shareholders, according to the report. Xtract Research under the title “Leverage Checks Are Destroyed.”

“More and more we see borrowers being given the opportunity …


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