Financial Times FT.com

Cov-lite market: Loose instruments without warning signs

By Paul J Davies

Published: July 25 2007 03:17 | Last updated: July 25 2007 03:17

Since Anthony Bolton, the noted fund manager at Fidelity, hinted at the bubble character of the “cov-lite” loan market, it has attracted far more attention than it deserves – at least in Europe.

Such loans are essentially corporate debt granted to the private equity sponsors of buy-out deals on very loose terms.

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