Jenny Warshafsky, a covenant analyst at Xtract research, sees terms for lenders getting worse and worse. But Warshafsky says a recent $250,000 deal put together in the software industry by Vista Equity Partners might be the worst yet. And she didn’t soft-pedal her legal issues in a June report titled “The Worst Debt Covenant Ever.” Q2 hedge fund letters, conference, scoops etc The report comes amid a trend of weakening loan covenants. Loan covenants are designed to protect lenders by limiting actions a corporation can take to increase risk in an investment. For example, they can limit how much additional…
Amid Bad Debt Deals, Loan Covenant Analyst Says This Deal Is The Worst Ever
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.