While not as bad as the 4th quarter of 2008 and the 1st quarter of 2009, credit markets continue to be less friendly.  Credit limits are often lower as banks modify their ratios.  Loan covenants are more onerous and banks are more strictly enforcing them.  Those friendly waivers are harder and more expensive to obtain.

The latest trend appears to be line of credit facilities are commonly being written with variable rates tied to some benchmark rate plus a rate floor (”at no time will the rate be less than…….).

This entry was posted on Thursday, August 20th, 2009 at 4:02 am and is filed under Economics, Capital. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.