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Loan Market Covenant Trends

Loan Market Covenant Trends

LSTA’s Loan Market Covenant Trends, designed as a recurring feature for LSTA members, provides an overview of evolving covenant language in the leveraged loan market. Each installment analyzes developments in credit agreement drafting to identify shifts in documentation standards, key borrower-friendly or lender-protective provisions, and broader market drivers influencing covenant strength.

Recent media

Recent publications/releases

Loan Market Covenant Trends: 2Q26
As Q2 cooled, refinancings led and credit selectivity sharpened, shaping how covenants are evolving heading into H2. Read full coverage.
  • Analysis & Data, Loan Market Covenant Trends
Loan Market Covenant Trends: 1Q26
1Q26 offered no respite from 2025’s volatility. The “Saaspocalypse,” Middle East tensions, and shifting private‑credit sentiment reignited turbulence across markets and documentation. Read full coverage.
  • Analysis & Data, Loan Market Covenant Trends
Loan Market Covenant Trends: 4Q25
A year of macroeconomic volatility translated into overall borrower-friendly paper, the continued pursuit of liability management transactions (LMTs) and the emergence of novel drafting technologies.
  • Analysis & Data, Loan Market Covenant Trends
Loan Market Covenant Trends – 3Q25
The third quarter of 2025 was characterized by an initial surge of optimism that was tempered by concerns about the impact of persistent high inflation, ongoing trade negotiations, uncertain monetary policy and high equity valuations, along with apprehensions regarding economic growth.
  • Analysis & Data, Loan Market Covenant Trends
Loan Market Covenant Trends – 2Q25
The themes for global financial markets in 2Q25 were uncertainty and volatility.
  • Analysis & Data, Loan Market Covenant Trends
Loan Market Covenant Trends – 1Q25
The first quarter of the year proved a turbulent period for markets.
  • Analysis & Data, Loan Market Covenant Trends

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