Resumen de Americas: : Cov-lite: the next international bonds?

• The article assesses whether the growing number of covenant-lite loans in Europe will the next international bond. It suggests the potential of covenant-lite loans to pull business from the U.S. market and to drive liquidity as well as impact other aspects of sponsored loan deal structures. Outlook is offered on the possible response of banks, lenders and borrowers to covenant-lite loans, as well as on the potential outcome of the competition between covenant-lite loans and bonds.