- Maintenance covenants almost gone in large loans, Moody’s says
- Competition with banks for business spurring weaker safeguards
Private credit firms seeking to capture market share from traditional bank lenders are giving up investor protections as they snag larger financings, according to Moody’s Investors Service.
Direct lenders have been siphoning business from the broadly-syndicated leveraged loan market in recent years, in part by staking a claim to increasingly larger deals. But an analysis by the credit-rating firm shows that legal safeguards that protect investors tend to weaken as the size of the transactions increase.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.