While primary and secondary pricing shifted dramatically last quarter, there was another – perhaps more critical – change: Improving loan documents. Below we talk about covenants past (what happened last quarter?) and future (if you can measure covenants, will they change?).
If one (hyphenated) word described December 2018, it likely would be “risk-off”. As the first chart in LCD’s Quarterly Review demonstrates, the riskier the asset class, the more it traded down. To wit, in fourth quarter, equities were down 13.5%, HY bond returns were -4.6%, leveraged loans were down 3.5% and HG bonds edged into negative territory (-0.04%).
This week we cover Annual Meeting Recap, Where are Covenants Going?, Standard Terms for Incremental Facility Amendments, and Bankruptcy Venue Reform
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.