The return of cov-lite debt


The corporate bond market may have bounced back strongly in 2009, but the road to economic recovery will be a bumpy one for many issuers. So why does the covenant-lite bond appear to be making a comeback?

The credit market can sometimes look an odd place to outside observers. No sooner have investors won the battle for improved covenant protection in new bond issues than they seemingly forfeit their advantage. A handful of offerings from issuers such as Peugeot finance vehicle Banque PSA and Ge