Direct Lenders Mull Concessions to Borrowers in First Major Test
- ‘Special place in hell’ for those not showing flexibility now
- Virus-sensitive industries have $339 billion outstanding debt
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Direct lenders around the world are talking with borrowers about easing interest payments, waiving penalties and relaxing covenants as they assess the growing damage to their portfolios caused by the coronavirus pandemic.
The discussions are occurring as the global turmoil seeps into the $812 billion private market. The crisis is one of the first major tests for the asset class, which has grown from about $200 billion before the 2008 financial crash -- buoyed by investors including pension funds, insurers and family offices.