This chapter examines the rise in bond issuance across Europe, highlighting Tissenkrupp's noteworthy funding initiative. It discusses the role of covenants in this landscape, particularly how they influence investor risk appetite and overall credit health amidst the ongoing challenges of the coronavirus crisis.
The Covenants by Reorg team speaks to Muzinich & Co’s Senan Kiran about the multiple factors driving covenant pushback, of which the credit story is just one; the use if flexibility in documents: Caveat Emptor - know your documents; and IFRS 16, calculating covenant capacities and campaigning to increase transparency.
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