Investors uneasy as cov-lite terms endure

‘Loosey-goosey’ lending remains dominant despite a tougher environment for borrowers

Higher interest rates have done little, so far, to reverse the loose terms prevalent in leveraged loans, according to investors.

Despite 18 months of rising interest rates that create a tougher environment for borrowers, so-called cov-lite loans continue to dominate, speakers said at an industry conference in London on October 19.

“My sense is that [borrowers] are getting away with it. Covenants