North American Loan Covenant Quality Indicator: Race to the bottom resumes as the market favors higher-rated spec loans
23 Jan 2020|Moody's Investors Service
The LCQI worsened by 11 basis points to 4.02 compared to the prior quarter, placing it well into weak protection territory. The findings suggest that risks are increasing and that while investors are voicing caution, they are not effectively pushing back on permissive covenant terms.
Covenants — Asia: 2019 covenant quality scores reach all-time weakest level amid record-high issuance
22 Jan 2020|Moody's Investors Service
2019 average score reached all-time weakest level. The average covenant quality (CQ) score for Asian full-package high-yield bonds in 2019 weakened by 6% to an all-time weakest yearly score of 3.28 (moderate ↓) from 3.08 (moderate) in 2018.
16 Jan 2020|Moody's Investors Service
Our indicator weakened modestly to 4.47 in December due to a high concentration of Ba-rated bonds.