European investment-grade bonds have weaker covenants than their North American counterparts, a Moody’s study has shown. The study, Moody’s first investigation into covenant strengths, also shows the opposite is true for high-yield bonds: European high-yield bond indentures are tighter than North American versions.
The transatlantic divide manifests itself in wide-ranging and idiosyncratic ways, says Moody’s. Investment-grade bonds issued in the US and Canada typically include covenant protectio
The week on Risk.net, July 7-13, 2018Receive this by email