Economic gloom ‘won’t stop cov-lite lending’
Investors say borrowers will continue to enjoy looser terms, despite projected rise in defaults
The IMF has forecast that global growth will fall to 2.7% next year – its lowest level since the financial crisis – and rating agencies warn that default rates on leveraged loans are set to double. Yet despite the economic backdrop, investors still believe that covenant-lite syndicated loans will remain standard.
Daniel Ko, principal and portfolio manager at Eagle Point Credit Management, is
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