Can you sweep a swap? Derivatives debate hits private credit

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Can you sweep a swap? Derivatives debate hits private credit

Rosa O'Hara's avatar
Will Caiger-Smith's avatar
  1. Rosa O'Hara
  2. +Will Caiger-Smith
4 min read

This article is part of our forthcoming service, 9fin Private Credit. If you're interested in a free trial, contact subscriptions@9fin.com

There’s a new docs debate in private credit, and it centers around an area of finance that can be just as opaque as private credit itself, and often more complex — derivatives.

According to 9fin sources, in recent weeks investors and lawyers have been poring through loan documentation to figure out whether lenders might be entitled to a paydown when companies generate cash by unwinding swap arrangements.

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