Feb 17 2019 by Business Insider
85% of all leveraged loans — one of the most-risky types of corporate debt — are now "covenant-lite."
That means they lack traditional requirements for companies to maintain certain financial benchmarks that protect the investors who pay for them.
Leveraged loan quality is thus at a record low.
Bank of England Governor Mark Carney compared it to the subprime mortgage crisis of 2007.
The leveraged loan market just set a new record: The quality of investor protections in this market...
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