Sub lines: Lenders react to ‘real credit concerns’

There are 'real credit concerns' for some lenders, according to Wells Fargo; Lenders talk about how they're mitigating those credit concerns

Part three of “The shifting landscape for subscription credit” deals with what Wells Fargo’s Jeff Johnston says are “real credit concerns” for some sub line lenders, despite almost pristine credit performance in the sector, so far.

In “Lenders look beyond LP collateral“, we then look at the ways in which lenders are trying to mitigate or hedge against those concerns, including NAV covenants, LP skin in the game via minimum-called capital requirements and looking at assets as potential secondary sources of repayments.

If you missed Parts 1 and 2, you can find them here:

The shifting landscape for subscription credit

Take it to the limit”.