At The Deal's Fifth Annual Private Capital Symposium Hamilton "Tony" James, the president and COO of the Blackstone Group LP, spoke about the benefit of loose debt covenants.
James attributes the lack of defaults in the face of a slowing economy to the covenant-lite debt terms portfolio companies received in the boom times.
"Covenant-lite debt structures are not only private equity's interest, they're in everyone's interest...They benefit society, " James said. "I think everyone should go home and tell everyone they know that covenant-lites are a must."
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