Thursday, 14 April 2011

Risky loans stage comeback

http://www.ft.com/cms/s/0/9f7c528c-4da3-11e0-85e4-00144feab49a.html#axzz1JUmLlJcO


“These [structures] are red flags for weakening creditworthiness and they create a vulnerable market,” said Dan Fuss, vice-chairman of Loomis Sayles, a money manager. “Deal structure is very poor.”


Moody’s Investors Service warned last week that cov-lite deals “may be laying the groundwork for painful fallout from the next credit downturn”.

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