Investors uneasy as cov-lite terms endure

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

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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 are not significantly being pared back,” said Yannick Adler, partner at White & Case. “Structural

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