Report

Putting cov-liter fuel on the flames

The tower of US corporate borrowing has grown taller and shakier than ever. The credit offer has assumed extremly generous proportions since the financial crisis and that offer has been accepted to an increased extent. The level of new borrowing  is 50 per cent higher than in 2007 in nominal terms, and the typical quality of new debt issuance ha fallen appreciably. The massive growth of covenant-light (cov-lite) loans and the increased take-up of credit from issuers with the weakest investment grade ratings has raised the stakes appreciably. 

Provider
Economic Perspectives
Economic Perspectives

Economic Perspectives is a trusted provider of global macroeconomic and financial research with clients in North America, Asia and the UK.

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Analysts
Tom Traill

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