Junk Credit Weakens on Lack of Covenants

Stein, Gabrielle
February 2007
Investment Dealers' Digest;2/5/2007, Vol. 73 Issue 5, p11
Trade Publication
The article focuses on the economic report conducted by Fitch Ratings Inc. concerning the status of the market for debt packages in the U.S. Accordingly, the junk credit market is weakening due to the lack of coverage covenants for loan investors in the country. Furthermore, the removal of the covenant protections has led to the wearing out of the important conduit intended to protect lenders to the deterioration of the borrower's financial condition.


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