High yield covenants in focus as market wakes up to lease changes
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High yield covenants in focus as market wakes up to lease changes

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Lease accounting changes known as IFRS 16 are rolling out through capital markets, with companies keen to reassure investors that, despite the new way of presenting their balance sheets, little has changed. But that’s not true for every firm and for some high yield issuers, the change represents a big loosening in covenant terms.

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