Jonathan Sigal, First Vice President of Loan Review, Senior Portfolio Officer, Wilshire State Bank It’s not unusual for borrowers to sign a loan agreement without understanding all of its provisions.

What Is a Covenant-Lite Loan? A covenant-lite loan is a loan issued with fewer financial restrictions and performance requirements for the borrower, offering more flexibility than a traditional loan.

SOMETIMES THINGS JUST don’t seem quite right. “One good thing about the rapid growth of covenant-lite leveraged loans is that even if things go wrong these loans are not going to fall over for a long ...