‘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.
Financial historian Russell Napier talks to Merryn Somerset Webb about the next deflationary bust – why it's coming, what it means for you, and how you can survive it.
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On this day in 1924, New York department store Macy's held its first Thanksgiving Day parade. It would soon become a city institution, kicking off the run-up to Christmas.