Junk-Bond Buyers Said to Seek Cheat Sheets in Sale Documents
- Group to ask lawyers to summarize key covenants for them
- Slumping high-yield debt demand may give buyers more sway
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High-yield bond investors are fed up with poring through hundreds of pages of sale documents looking for potential problems that could come back to bite them.
A group of European junk-bond buyers is planning to ask issuers’ lawyers to summarize and explain key covenants in the first few pages of sale documents, according to two people familiar with the information.The Association for Financial Markets in Europe, or AFME, is coordinating the effort, said the people, who asked not to be identified because the discussions are private.