With regard to the pricing of credit to institutional investors, it is a question of the dispersion of the loan, in relation to credit quality and market-based factors. This second category can be divided into liquidity and market techniques (supply/demand). OEE programs were widely used prior to the 2008 credit crunch. Since then, they have been much less represented in the credit landscape, as investors in capital markets retreat ahead of declining market-to-market products. If lenders accelerate, the company will typically file for bankruptcy and restructure its debts through Chapter 11. However, if the entity is not worth saving because its core business has collapsed, the issuer and the lenders may agree to a Chapter 7 liquidation, in which the assets of the enterprise are sold and the proceeds distributed to creditors. A “BBB” or “BBB” issuer may be able to convince lenders to offer unsecured financing, but lenders may require jump pledges in the event of a deterioration in the issuer`s credit quality. Like second-link loans, Covenant Lite loans are a special type of syndicated credit facility. At the most basic level, Covenant-Lite loans are loans that have bond-like financial covenants, rather than traditional maintenance covenants that are normally part of a credit agreement. What`s the difference? Lenders are therefore almost always at the forefront of creditors before the application and, in many cases, they are able to renegotiate with the issuer before the loan is heavily affected. So it`s no surprise that credit investors perform much better in the past than other creditors on a deficit-data-default basis.