This chapter explores the evolving nature of covenants in investment decisions amid economic challenges. It highlights the need for a comprehensive approach to credit analysis, considering the flexibility of covenants and their impact on overall credit quality.
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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