Dealmaking Competition Erodes Junk Loans’ Last Line of Defense

Relaxing covenant requirements to win competitors in the race to fund deals is leaving sub-investment grade loan investors without their last line of defense, according to an analysis by Moody’s...

By Katherine Schwartz · Bloomberg Markets

Relaxing covenant requirements to win competitors in the race to fund deals is leaving sub-investment grade loan investors without their last line of defense, according to an analysis by Moody’s Ratings.