hard · Private Credit & Debt
An institutional lender is evaluating a 'Covenant-Lite' TLB vs. a traditional TLA. The borrower has cyclical cash flows and 5.5× leverage.
Which structure is most likely to result in a lower 'Loss Given Default' (LGD)?
- TLB has lower LGD due to bullet maturity
- Both have equal LGD
- Traditional TLA
- Covenant-Lite TLB
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