‘Cov-lite’ is used to describe a loan where the lender, typically a bank, does not impose standard performance conditions on a borrower. The loan documentation is therefore literally ‘covenant light’. The standard covenants, or clauses, typically waived would normally set operating targets to ensure that the borrower, often a private equity firm, generates sufficient cash flow to meet interest and capital repayments. A breach would give the bank the right to demand repayment or take control of the company.
Merryn Somerset Webb interviews Paul Hodges about deflation, the global economy's 'Great Unwinding', and how Britain's house prices could halve.
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Adolf Hitler came to power on this day in 1933 following a political gamble that went disastrously wrong, and allowed the Nazi leader to call fresh elections.