‘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 fund manager James Anderson about where to find growth, and where the next crop of great companies might come from.
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On this day in 1963, Dr Richard Beeching produced his infamous report that saw many railway lines closed in favour of bus services.