Fitch: Insolvency Regimes in Spotlight as Investors Look to Next Default Cycle

Fitch Ratings-London/Frankfurt/New York-13 February 2014: Fitch Ratings says in a new report that losses from the next leveraged finance default cycle may be significantly in excess of previous cycles. This reflects weakening new-issue rating mix in bond and loan markets as leverage levels rise and covenants become increasingly lax in both the US and European markets.

“Knowledge of insolvency regimes will be critical to cross-border investors when determining recovery and pricing in relative creditor rights,” says Sharon Bonelli, Managing Director in US Corporates.

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