Bank Loan Recovery Rates Declining as Financings Get Riskier, Moody's Says

(Bloomberg) -- Banks can expect to recover less
money when borrowers default than in the past, Moody's Investors
Service said.

The stripping away of traditional investor safeguards on so-
called covenant-lite loans, higher leverage and the sharing of
collateral between different types of creditor will reduce the
recovery rate in the U.S. and Europe, Moody's said in a summary
of a report to be released today.


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