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...The writer is founder of Fox Legal Training Much ink has been spilled about the degrading quality of investor protections in high-yield bond and leveraged loan agreements, also known as “covenants”....
...And on its own, Altice France is big enough to have a noticeable impact on the share of CLOs that are in breach of their loan-quality requirements: The effect could spread globally if there are downgrades...
...The UK’s top financial regulator has vowed to improve individuals’ access to suitable loans by standardising how lenders exchange information about previous debt....
...They’re willing to do deals for high-quality credits. You can get a deal done for a double-B senior loan at a 300-350bp spread all day long. That market’s wide open....
...The hard questions from public market investors will be about earnings quality....
...And while demand for high quality properties remains high, the outlook for low quality buildings is grim....
...Some employers are attempting to ease the financial burden on long-distance commuters beyond allowing them to work part of the week from home and offering rail season ticket loans....
...Even in high-quality CRE, there will be assets that, once they have to restrike their loan, won’t be able to cover cash flow....
...At best, this casts serious doubt on the idea that anyone can measure a BDC’s quality by the performance of its loan book....
...So, if you are wondering whether the economy is improving or degrading, look at bank results, particularly credit quality....
...But falling office values have generally been exacerbated by a rental slump as tenants shun older, lower quality office buildings....
...“The first step in this situation is always getting information; it’s an obscure sector where the quality of data is not homogenous,” he said....
...and higher-risk loans....
...There are architectural obstacles, and demand depends on neighbourhood quality....
...“Loan growth saw yet another weak quarter [from October to December] due to a common focus on quality given elevated household debt and challenged small and medium enterprises, amid a still sluggish and...
...Some have suggested that finance could play the role of enforcer by approving long-term loans for retrofit work as part of a mortgage....
...“It’s not like triple C is a diversified index,” said Jeremy Burton, US high-yield and leveraged loan manager at PineBridge Investments....
...Northvolt received the highest “dark green” rating from Cicero, a Norwegian consultancy that offers grades for the environmental quality of debt offerings....
...But early signs that credit quality was starting to deteriorate among consumers prompted the RBI to intervene....
...“Availability and quality of data remain pervasive challenges,” Saporta added, noting that approaches to assessing climate data were “fragmented” and that there was a case for centralising data collection...
...Hedge fund credit quality as perceived by dealers deteriorates during weak market conditions, when the value of assets the banks hold as collateral vis-à-vis the funds falls....
...The ECB said the banking system was “well placed” to cope with a deterioration in asset quality due to its “strong capital and liquidity” levels and surging profitability, which recently hit its highest...
...This could involve risk given the political sensitivity of data privacy and loan access....
...The build-up in loan loss provisions is prudent accounting. For now credit quality remains in good shape....
...Recession, or even a slowdown, is the main risk, especially to lower-quality credit....
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