Covenant Compliance Monitoring: How a Direct Lender Tests Each Quarter’s Certificates Against Its Own Deal Definitions
By Khurram Tehseen, FSA, Founder and Principal at Operating Alpha From KORE1: The short answer Covenant compliance monitoring means recalculating each borrower’s leverage, fixed charge coverage and interest coverage from its quarterly compliance certificate using that deal’s own defined terms, then logging every exception before it reaches credit. When quarter end outruns the team, KORE1 … Read more
