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Cov-lite loans are back!

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Uploaded by on Mar 29, 2010

Lyondell Chemical issued the fist covenant-lite loan since the financial crisis subsided. Senior editor Paddy Hirsch explains what a cov-lite loan is, and why their return could be bad for the economy.

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Education

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  • as usual amazing SIR!

  • The return of this type of loans indicates a recovering economy with less pre-condition required to access liquidity.

  • it sound like a double dip. In other words we are getting tea bagged.

  • So cov-lite means a borrower is without an obligation to meet certian conditions set by the lender within the durration of a loan. What is the difference terminology wise between this and lending standards (if cov-lite, then, is a standard itself)?

  • Always a pleasure watching these videos. :-)

  • Thanks Paddy!

  • I have become a drunkard after watching these videos :)

    Oh!! Will we never learn? Reflating a sagging balloon is an exercise in futility...

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