Читать книгу Alternative Investments 2.0 - Группа авторов - Страница 49

In recent years, the amount of capital as well as the number of GPs in the market have grown significantly. This increase in competition has led to an environment that generally favours borrowers. In that regard, investment guidelines are a useful way to prevent managers from chasing unattractive deals. With these guidelines, thresholds can be applied to certain credit metrics such as leverage, LTV or effective covenants.

Exhibit 12 demonstrates that covenants can effectively protect lenders. Indeed, imposing just one covenant can reduce losses by more than half on average, based on historical figures. Covenants are also helpful to identify the borrower’s underperformance earlier thus mitigating the loss rate.