Covenants

A second survey has backed up an existing one in identifying a declining private debt default rate. The omens for portfolio company performance are promising.

Some of private debt’s safer but lower-returning strategies may face stronger competition as interest rates rise, making opportunistic approaches more compelling. Andy Thomson canvasses the views of investors as the asset class contemplates the challenges of a new year.

As economic conditions become tougher, deal documentation is once again a hot topic. Borrowers are reluctant to cede too much, but lenders are reining back some of their flexibility to pile up more debt. Andy Thomson reports

The flourishing deal market of a year ago is becoming a distant memory as more challenging realities are confronted at the negotiating table.

With a change in market conditions, changes in deal documentation might be expected. But shifts in the balance of power don’t always happen when expected.

A new study has revealed how pertinent information regarding a borrower’s financial health may be kept hidden from lenders, writes Andy Thomson.

Leading asset class professionals explain their concerns (and offer reasons why things may not be all that bad).

Global events have been so momentous that debate has shifted away from borrower/lender negotiations. This week, they were put back in the spotlight.

There is no uniform view on what should be the next reference rate for loans, but decisions will need to be taken soon.

Having exploded onto the scene in the broadly syndicated market, the impact of sustainability-linked loans is now being felt in private debt. But managers need to make sure they do not stand accused of greenwashing. By Andy Thomson