latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/leveraged-loan-news/cov-lite-loans-europe-hold-82-market content
BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
PRIVACY & COOKIE NOTICE
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In This List

Cov-Lite Loans in Europe Hold at 82% of Market

Despite investor appetite, April European leveraged loan issuance slumps to €2.5B

Has cov-lite leveraged loan issuance finally peaked?

Leveraged Finance Fights Melanoma Benefit set for May 22 in NYC

Amid retail investor retreat, high-flying leveraged loan asset class begins to shrink


Cov-Lite Loans in Europe Hold at 82% of Market

Covenant-lite credits now account for 81.6% of all outstanding leveraged loans in Europe, nearly double the rate seen only three years ago, according to the European Leveraged Loan Index (ELLI).

Cov Lite Loan Outstandings

As of Jan. 31 there was €181.75 billion of European loans outstanding, according to the ELLI, meaning there is some €148 billion of cov-lite debt now held by investors.

Cov-lite loans are less restrictive to debt issuers and the private equity shops that sponsor them, while offering lenders and institutional investors less protection than do traditionally covenanted deals. Broadly speaking, cov-lite credits have bond-like incurrence covenants, which come into play only if the borrower takes a specific action, such as issuing more debt or making certain acquisitions. Traditionally structured loans have maintenance covenants, where borrowers must pass regular, agreed-to tests of financial performance, such as minimum levels of cash flow and maximum levels of leverage.

In the much-larger U.S. market there is roughly $922 billion of cov-lite loans outstanding, according to the S&P/LSTA Loan Index.

Try LCD for Free! News, analysis, data

Follow LCD on Twitter.

LCD comps is an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.