Unstructured Finance

Got those zombie company covenant lite blues

June 4, 2010

Zombies 2One of the big drivers of the debt balloon that imploded so spectacularly was the trend for covenant “lite”, which has allowed zombie companies to┬ástumble on┬álong past the point at which it would have been useful for creditors to intervene. This has sharpened the appetite for stronger corporate governance around covenants and persuaded investors that they need to take more of an active interest in what companies are actually doing with their money.

Saving Hendry? Thanks but no thanks, says Hugh

February 19, 2009

rtr1z9ud1It was always unlikely that a letter of advice was going to change the mind of maverick hedge fund manager Hugh Hendry.