Spotlight on lender risk mitigation techniques

Author: | Published: 16 Jul 2018

Lenders need to adopt some risk mitigation techniques as the market operates in frothy conditions

Against a backdrop of optimistic asset valuations driving increased leverage multiples across the large cap and mid-market leveraged finance spaces and fuelled by a seemingly endless supply of debt capital, it is perhaps not surprising that there has been a recent increase in popularity of holding company (holdco) financings. Whether in the form of loans or bonds, these have been deployed both in dividend recapitalisations and forming part of the sources of funding in traditional acquisition financings....