Payback

Payback Time – Readers’ Say

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Our mailbag was overflowing in response to last week’s column on the topic of repayment trends in leveraged loans. Readers mostly bemoaned the lack of discipline by lenders in compelling borrowers to reduce debt in the form of real amortization. We considered how quaint the notion has become of borrowers actually repaying debt over the…

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Payback Time

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One bedrock tenet of sound lending practices is establishing the borrower’s capacity to repay its debt over the contractual life of the obligation. So it’s not surprising that regulators have taken banks to task in recent reports highlighting a growing number of leveraged loan issuers which lack that capacity. Specifically, in its 2014 Leveraged Loan…

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