Head of investment-grade corporate research, RBS, London
Covenant protection does need strengthening and we need to focus on upgrading the negative pledge and improving the wording of the change-of-control clause.
Starting with the negative pledge, subsidiary borrowing is an obvious weakness of both US and European investment-grade bond documentation. However, in Europe the standard negative pledge clause in most investment-grade bonds is even weaker, allowing issuers to grant unlimited s
The week on Risk.net, July 14–20, 2017Receive this by email