hard · Corporate Credit Analysis
A leveraged loan is flexed from a 1% soft call (101) for 6 months to a 1% soft call for 12 months.
Economically, how should a credit analyst view this change?
- As a reduction in the borrower's refinancing flexibility
- As an improvement in the lender's recovery rating
- As an increase in the cost of debt for the borrower
- As a non-material documentation change with no economic impact
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