‘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 talks to Yale professor and Nobel Prize winner Robert Shiller about how the power of 'stories' drives the global economy and creates financial bubbles.
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Responding to the need for a single political party to represent the trade unions, the Labour Party was formed on this day in 1900, led by MP Keir Hardie.