Investors Still Waiting for Covenant Upside

September 2010
High Yield Report;9/6/2010, Vol. 21 Issue 36, p11
The article discusses the condition of the market for junk bond covenants as of September 2010. Peter Ehret, head of high yield for Invesco Fixed Income, explains that credit got very difficult to borrow and the market was closed to almost everybody at one point. The financial sponsor factor is one factor that will determine the amount of investor scrutiny and potential pushback on bond covenants, according to Adam Cohen, founder of credit research firm Covenant Review. The trend of a call option covenant is mentioned.


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