Covenants need overhaul: Fitch
Fitch Ratings last month highlighted the weakness in European solvency regimes that disadvantage bondholders when European companies lose their investment-grade status and drop into the fallen angels category.
In its report, entitled When Angels Lose Their Wings, Fitch states that European corporate bonds lack covenant and legal protections commonly found in US bonds. This could turn corporate bonds into a form of cheap preferred equity by bank rescue packages, leaving bondholders stuck on the
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