Americas: A shorter cycle

Author: | Published: 11 Jul 2011

What do securitisation of esoteric assets, covenant-lite, seven-times leverage and pre-crisis finance conditionality all have in common? They've all returned quicker than people expected. Much quicker.

"I thought we'd learnt our lesson, but perhaps not," has become a standard comment on the state of the market. In the darkest days of 2009, people were predicting a good four years before the more frontier-pushing structures returned.

But the past six months has shown that the cycle has shortened and that – already...