1) what is the size of the leveraged loan market? what is the size of the hy bond market? 2) why would a distressed direct lender prefer maintenance covenants versus incurrence covenants in its loan documentation? 3) what is the largest buyer of non-investment grade loans, otherwise known as leveraged loans? describe or draw the mechanism of how it works? 4) why do private equity firms, otherwise known as sponsors, prefer leveraged loans to hy bonds? 5) what are three of the major drivers in the development and growth of the shadow banking market?
