Coronavirus

The pandemic has put loan terms and documents in the limelight as markets keep an eye on how lenders manage their portfolios during the crisis.

The new generation of dislocation funds now have a multi-billion-dollar example, with $2.8bn raised for a vehicle and more than $1.1bn for separate accounts.

If today’s crisis were a repeat of the GFC, lenders could use those references to guide their approach, but covid-19 has brought the world into uncharted territory.

More than half of the participants in Accord Fund III B are new to the strategy.

As the impact of coronavirus starts to be felt by businesses and lenders, there could be a wealth of opportunities for those looking to buy NPLs.

While the eyes of many are on loan documentation, Nicole Downer of MV Credit says the focus should be elsewhere, including fostering solid relationships with sponsors.

It was widely predicted that the market downturn would profoundly alter behaviour in leveraged finance, but then along came EBITDAC as a reminder of the past.

In common with all parts of the world, emerging markets are having to take stock of a major health and economic crisis. But the rationale for non-bank finance is continuing to grow and returns can be attractive. Andy Thomson reports

As an example of the practice surfaces, an industry body is warning other companies not to use the covid-19 outbreak as an excuse to try and raise additional finance through flexible documentation.

The coronavirus outbreak has caused disruption to fundraising plans and changes in investment focus.