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Videos (104)

THEY ARE LOADING UP ON COVENANT-LITE DEALS AND REMOVING THE GUARDRAILS THAT PROTECT THEIR INVESTORS

THEY ARE LOADING UP ON COVENANT-LITE DEALS AND REMOVING THE GUARDRAILS THAT PROTECT THEIR INVESTORSPT9M19S
Jan 15, 2026, 10:38 PMPT9M19S
FinanceTubeWatch Tags
private_creditcovenant_light_loansleveraged_loansdirect_lendingpension_fundslife_insurance_fundssovereign_wealth_fundsprivate_equitymoodys_analysiscllo_marketmiddle_market_dealshong_kong
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Views5,34113,009
Likes5741,057
FinanceTubeWatch Generated Description

In this video the host warns that private‑credit firms are increasingly offering “covenant‑light” loans—deals with weak or no protective clauses—to win business from large borrowers, a practice that erodes the safeguards that traditionally shield investors such as pension funds, insurers and sovereign wealth funds. The trend, now spreading from large‑mid‑market deals into the broader $1.7 trillion market, could ignite a private‑credit bubble and leave investors holding the bag if defaults rise and litigation follows.