Corporate lenders are locking down protection

In some recent deals money managers have successfully closed loopholes borrowers might have tried to exploit if higher-for-longer interest rates overwhelmed their finances. — Bloomberg

NEW YORK: Lenders to risky, debt-laden companies are increasingly demanding protection from financing moves used to undercut creditors when times get tough. A recent crop of leveraged loans demonstrated investors’ heightened concern with protecting their assets.

In some recent deals money managers have successfully closed loopholes borrowers might have tried to exploit if higher-for-longer interest rates overwhelmed their finances.