Show Me the Money: Value Leakage in European High-Yield Bonds

High-yield bond covenants impose restrictions on an issuer's ability to engage in certain transactions and activities, including restrictions on an issuer's ability to transfer cash and assets beyond the reach of creditors, or "value leakage," predominantly through the restricted payments and asset sales covenants. Partner James McDonald, counsel Kenneth Ryan and associate Michael Chern discuss recent trends and innovations in these covenants, focusing on how they address value leakage in the European high-yield market.