Products for Asset Managers
Problem: Legal Risk Lurks in Leveraged Credit Agreements
Problem: Legal Risk Lurks in Leveraged Credit Agreements
Problem: Legal Risk Lurks in Leveraged Credit Agreements
Modern credit agreements in the corporate bond and leveraged loan markets are ~250 pages long, completely bespoke, and full of dangerous legal loopholes for investors. Unless your own lawyers write all your credit agreements, the covenants you buy into will determine whether you get paid or not in a restructuring scenario.
Due to the time consuming and costly nature of covenant-risk-assesment work, Analysts and Portfolio Managers researching high-yield bonds don't assess covenants until the last stage of their security selection process. Corporate bond indentures are filled with covenants that are disadvantageous for investors, to the point that the average recovery of a senior secured high-yield bond has fallen from a long-time average of 70 cents to just 30 cents on the dollar on 2024! Thus, the credit risk for (all but the largest) investors has gone way up because the expert lawyers that write credit agreements usually work for the issuers.
Why is this happening now?
An extended bull market has greatly diminished the negotiating power of credit investors, especially in the public markets. Meanwhile, existing covenant analytics services provide limited value and limited coverage. And it gets even worse for the average credit investor: incumbent covenant analytics are no match to the skill of the lawyers on the issuers' side.
Solution: an A.I. Terminal For Credit Agreements
Problem: Legal Risk Lurks in Leveraged Credit Agreements
Problem: Legal Risk Lurks in Leveraged Credit Agreements
Stop spending hours searching for indentures and reading bond covenants the hard way! No need to bring your data, bring your CUSIPs or bond tickers instead. CREDX AI screens and curates indenture data for the entire high-yield bond market.
The CREDX AI Covenant Intelligence Platform enables analysts to read, understand, and prioritize covenants 10x better and faster. Now you can perform covenant due diligence early and at scale! We don't give you answers. Instead, we give you an innovative AI platform that helps you make intelligent investment decisions.
The CREDX AI Covenant Intelligence Platform enables analysts to identify, read, and decipher key covenants that drive investment performance. Our platform supercharges your high-yield bond selection workflow with an AI covenant map, AI covenant screening, easy covenant and indenture comparisons, bookmarking, portfolios, plus a built-in market-wide covenant search. Our platform is designed for analysts that read, but struggle with covenants. With CREDX AI, high-yield bond investing is transparent again, so you can focus on what you do best! Want a free demo? Click below or email to join our list at demo@credx.ai