The Fear of Being J. Crewed Is Once Again Roiling Leveraged Loans
- Also, Russia’s incredibly shrinking international bond market
- Japan’s bond market gets shorter amid BOJ pivot concern
Instant Pot multicookers for sale at a department store.
Photographer: Nina Westervelt/BloombergThis article is for subscribers only.
It’s the notification every lender fears: designation of an unrestricted subsidiary.
In plain English, it means that the company that you lent to has just shifted some assets backing your loan — very often among the most valuable assets — into a new unit that’s beyond your reach. And it signals that, in due time, that company will look to strike a deal to borrow more money against those shifted assets from another group of lenders.