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The excesses of cheap money era are provoking ‘creditor-on-creditor violence’ - @WilliamCohan latest column for FT here. So much of the leveraged loan market in recent years was struck on covenant-lite terms https://t.co/QcI3mrxRSV
Excesses of cheap money era are provoking ‘creditor-on-creditor violence’ https://t.co/pZBBPgtKuZ via @ft Lovely.... @WilliamCohan 🥷🧑🚒🦸♂️🦹♂️
The world has effectively been living beyond its means. Artificially cheap credit driven by the fiat printers has driven all kinds of crazy and upside down behaviours: - People wanting to be real estate and property moguls without a deep understanding of the craft, and they've… https://t.co/bPA8UvFpiy
The private credit industry, which has grown rapidly in recent years, is facing significant challenges due to the excesses of the cheap money era. Loose bond documentation that flourished during this period has left investors vulnerable to asset stripping in recent debt deals. This has led to what some are calling 'creditor-on-creditor violence,' as creditors fight back against these vulnerabilities. Much of the leveraged loan market in recent years was struck on covenant-lite terms. The industry is likely to remain opaque and continue evolving with limited regulatory oversight, according to Moody’s.