How Weakening Debt Terms Are Reshaping the Bond Market The bond market is experiencing intense conflicts, dubbed “covenant wars,” as companies exploit weakening debt terms to pit creditors against each other. Over the past decade, covenants protecting lenders have eroded due to low interest rates and fierce competition to lend to riskier, higher-yielding companies. Now, with rising interest rates causing financial strain, companies are increasingly using tactics to circumvent covenants, often by favoring new creditors over existing ones. This trend is causing concern among investors about the stability of the high-yield debt market and is even spreading to the traditionally more cooperative private credit sector. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Gold Prices Climb as Markets Anticipate Federal Reserve Rate Cuts READ MORE Emerging Market Debt Issuance Hits Record High in January READ MORE "AI-Fueled Equity Bubble" – Big Tech to Ignite Next Equity Market Surge READ MORE Ray Dalio Advocates for Gold in the Face of Looming Debt and Inflation Threats READ MORE Gold Recovers After Fed Decision Golds Interest Rates Steady READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment