Limiting Voting Rights Of Bond Holders With CDS Exposure Won’t Work Without Transparency, Says Legal Expert

Corporate lending was at one point a staid and relatively low-risk endeavor. But concern is mounting as risk profiles soar on several levels. Q1 hedge fund letters, conference, scoops etc As Congress held hearings on leveraged corporate loans last week, Bank of America CEO Brian Monahan, one of the largest enablers of such lending, warned of a “carnage” to come. This oddity occurred as the interest rate paid by borrower JC Penny hit an unsustainable 33%. But there has been a more subtle change that concerns those familiar with individual name credit derivatives. Bond issuers are now creating provisions in…