Can you sweep a swap? Derivatives debate hits private credit
- Rosa O'Hara
- +Will Caiger-Smith
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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.