Press Releases

The New York Times: New Boom in Subprime Loans, for Smaller Businesses

November 26, 2013

Risky “cov-lite” leveraged loans are experiencing a resurgence, and are now exceeding precrisis levels. As Rapid Ratings CEO James H. Gellert points out, this brings the risk of a higher default cycle, as smaller companies with cov-lite loans could find it tough to refinance those loans in coming years if interest rates rise, credit tightens and lenders seek to bankroll larger, more stable companies.

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