2Q26 Quarterly Covenant Trends: European Leveraged Loans & High Yield Bonds

July 22, 2026

In this webinar, Covenant Review’s Q2 2026 update explores how European leveraged loan and high yield bond documentation continues to evolve amid record issuance volumes and a refinancing-driven market. Shoshanna Harrow and Ahu Yalgin discuss key documentation trends, including covenant flexibility, EBITDA addbacks, portability provisions, documentation flex, and the growing imbalance between borrower and lender negotiating power.

The session also examines emerging drafting risks, aggressive covenant structures, and ongoing liability management transaction litigation, including developments involving Selecta, Hunkemöller, and Serta. For credit investors and leveraged finance professionals, this webinar offers practical insight into where creditor protections are strengthening, where they are weakening, and the trends shaping European credit markets.

Watch on YouTube:

Speakers:

Shoshanna Harrow, Senior Director at Covenant Review
Ahu Yalgin, Director at Covenant Review

Timestamps:

00:00 – Introduction
01:25 – European High Yield Market Trends
05:28 – Covenant Flexibility & EBITDA Addbacks
08:05 – New Covenant Developments
11:03 – European Leveraged Loan Market Overview
14:15 – Documentation Aggressiveness Trends
18:12 – Portability & Off Market Provisions
22:15 – Flex Trends & Syndication Dynamics
25:41 – Loans vs Bonds Comparison
30:20 – Liability Management Litigation