FYI: (The issuance of covenant-lite loans means that debt is being issued to borrowers with fewer restrictions on collateral, payment terms and level of income. Covenant-lite loans are also referred to as "cov-lite loans.")
The loan market for highly indebted companies has had a lot to celebrate this year.
In May, the so-called leveraged loan market, which is typically tied to the three-month Libor rate (plus a spread relative to the respective risk), and therefore does well in rising rate environments, surpassed the $1tn mark in the US.
Issuance, according to S&P Global Market Intelligence's LCD unit, is now on course to top last year's record high of $650bn.
Regards,
Ted
https://ftalphaville.ft.com/2018/11/16/1542344403000/Leveraged-loans-are-way-past--cov-lite-/
