In the Zirp era of the mid-2010s, credit markets were booming and investors were clamoring for anything that would produce yield. So they were willing to accept fewer legal protections embedded in bond and loan documentation if it meant they could get a slice of a juicy deal. Today, the proliferation of these so-called "cov-lite" deals has been coming back to haunt the market, with investors now fighting each other over how much they can claw back from struggling companies. Some hedge funds have become incredibly creative when it comes to finding loopholes to exploit in deal docs. So what exactly is "creditor-on-creditor violence" and why has it become such a thing? How much is it adding to big investors' legal bills? And what can be done to reduce all the squabbling? We speak with Sujeet Indap, Wall Street Editor at the Financial Times and author of The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Corruption of the Private Equity Industry.
Read More: Hedge Funds Smell Blood as Lenders Turn on Each Other
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