Covenant erosion and the lack of disclosure worried market participants at Afme’s Annual European High Yield Conference in London on Wednesday. While investors are ever better educated and organised, the hunt for yield is driving them to accept aggressive documentation.
“Investors are becoming more aware, more knowledgeable, more willing to push back,” said Saul Casadio, a director of corporate credit research at M&G. "The establishment of Elfa this year is also a signal that more investors are coming forward.
“Unfortunately, the market hasn’t been particularly favourable, and this has