Fox Legal Training sees debt documentation risks rising as too much cash chases a limited number of high-yield deals. “Provisions these days are drafted in a way that they are very much departures from reality,” Sabrina Fox, the company’s founder, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Aidan Cheslin in this episode of the Credit Edge podcast. “That creates an alternate universe, like La La Land, where the numbers don’t match the performance of the business,” says Fox, who specializes in covenant analysis. Fox and Cheslin also discuss lack of transparency in high-yield debt deals, lessons learned from the Altice debt restructuring, how aggressive liability management spreads to Europe from the US and where to spot trouble in prospectuses.

<p>Fox Legal Training sees debt documentation risks rising as too much cash chases a limited number of high-yield deals. &ldquo;Provisions these days are drafted in a way that they are very much departures from reality,&rdquo; Sabrina Fox, the company&rsquo;s founder, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Aidan Cheslin in this episode of the Credit Edge podcast. &ldquo;That creates an alternate universe, like La La Land, where the numbers don&rsquo;t match the performance of the business,&rdquo; says Fox, who specializes in covenant analysis. Fox and Cheslin also discuss lack of transparency in high-yield debt deals, lessons learned from the Altice debt restructuring, how aggressive liability management spreads to Europe from the US and where to spot trouble in prospectuses.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

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Junk Companies Are in Debt Covenant 'La La Land,' Says Fox Legal

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