US PP market: hold firm on covenants

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By Silas Brown
05 Dec 2019

Certain US private placement (PP) investors are beginning to fear a turn in the famously prudent market, towards a world with looser financial covenants. Let us hope this remains a fear and does not become reality.

The troubled investors’ thesis is simple. Corporate debt markets, including other forms of private debt, are awash with cash. The US PP market is attracting a greater number of investors than ever before, and incumbent buyers are also accepting lots of third-party cash to put to work.

With ...

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