Cov-lite will lead to lower recoveries – S&P

Covenant-lite loan agreements will lead to lower recoveries in the event of default, according to research published by Standard & Poor’s today.

The rating agency estimates recovery rates for cov-lite loans – where lenders give up some of the guarantees they have traditionally extracted from borrowers – are about 8–14% lower than for equivalent borrowers with full maintenance covenants.

“What makes a covenant-lite loan less protective than the loans traditionally made by professional bank lenders

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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