Talking point - Investment-grade bond covenants

Rob Orman

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

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: