Exploring the complexities and challenges in understanding covenant issues and EBITDA add-backs in financial analysis, emphasizing the need for standardized definitions and clearer parameters in leveraged finance markets.
In this episode, hosts Shweta Rao and Peter Washkowitz speak to JO Hambro Capital Management’s Head of Credit Lale Topcuoglu about the consequences of EBITDA add-backs in a declining credit market, challenges faced by investors working with “fictional” numbers, Covid-19-related EBITDA adjustments and the information asymmetries in the market creating “haves” and “have-nots”.
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