Milbank Says Investors Need Help to Read Complex Debt Terms: Q&A

Covenant packages have gotten so long and complex that it’s almost impossible for investors to read them without the help of a specialized service, says Jonathon Jackson, a partner at Milbank LLP and a member of the firm’s capital markets group.

Jackson spoke with Molly Smith on March 18. Comments have been edited and condensed.

What kind of flexibility are high-yield borrowers looking for these days?

You’re seeing a lot more of what I would call sponsor terms find their way into corporate issuers, where covenants tend to be a little bit looser. So the kinds of things that ...