Cloud 9fin On becoming the voice of Europe's buyside
14 snips
Dec 4, 2024 Sabrina Fox, co-founder and CEO of the European Leveraged Finance Association, dives deep into the world of leveraged finance. She discusses the evolution of covenant protections, including the impact of J.Crew blockers on negotiations. Sabrina highlights ESG's complex role in the market, advocating for realistic lender expectations. As founder of Good Girl to Goddess, she champions women's empowerment in finance, offering practical advice to combat imposter syndrome. Additionally, she talks about the potential of AI to transform legal work, freeing up professionals for more creative tasks.
AI Snips
Chapters
Transcript
Episode notes
Market Bifurcation Around Covenant Flexibility
- The market is bifurcating: weaker credits face tighter scrutiny while strong credits gain more flexibility.
- That split risks weaker borrowers getting overly flexible terms if market sentiment shifts.
Collusion Rules Stymied A Transparency Tool
- Alpha tried a tool for lenders to signal who had commented on deals but compliance fears blocked it.
- Antitrust and FCA concerns constrained collective market solutions despite clear demand.
Create Periodic Non-Deal Covenant Forums
- Hold periodic, non-deal covenant forums with arrangers and lawyers to share term issues without pricing risk.
- Use Alpha as an engagement hub to raise awareness of problematic provisions market-wide.