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Cov-lite has become something of a lightning rod as loan market detractors - with an eye on what already is an inordinately long credit cycle - say these deals will see lower-than-usual recoveries in instances of default, in part due to the lack of 'early' warnings that full covenants might provide investors.
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Specifically, first-quarter defaults were double from a year ago, while second-quarter defaults were quintuple last year's second-quarter instances of default, although last year's rate in the second quarter was very low at $661 million.
A seller of land that had been sold at one hundred pounds, for instance, deliverd to the buyer a bond promising two hundred pounds in case of default.
The agency will repay the lender in case of default.
Social scientists have documented many instances of the "default bias": when confronted by a choice in which one option is viewed as the default, people stick to that option.
In past instances of commercial paper defaults, the relatively small size of the bailouts has allowed the fund sponsors to absorb the losses rather than reduce the share price.
As specific policy interventions, we employed two instances of nudges : defaults and social information; and two instances of push measures: rebates and a minimum donation rule.
§ 615.5280 Retirement in event of default.
America's only known instance of outright default (other than refusing to repay debts in gold in 1933) occurred in 1979 when the Treasury failed to redeem $122m of Treasury bills on time.
An instance of the default view factory.
In the event of default or complete nonpayment on official borrowing, including loans from the monetary fund, the losses would be borne in the first instance by shareholders.
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CEO of Professional Science Editing for Scientists @ prosciediting.com