---
title: The Cov-lite Liquidity Advantage, Regulatory Pressures, and the Evolution of the Leveraged Loan Market
url: https://www.ml-quant.com/papers/repec/nbr-nberwo-35617/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-02
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:nbr:nberwo:35617
source_url: https://econpapers.repec.org/RePEc:nbr:nberwo:35617
featured: 2026-10-02
citations: unknown
topic: Risk, Credit & Banking
---


# The Cov-lite Liquidity Advantage, Regulatory Pressures, and the Evolution of the Leveraged Loan Market

Post-GFC, banks facing stricter regulation increased cov-lite loan issuances due to liquidity advantages that lower credit spreads, particularly for private firms seeking easier asset sales.

- Source: https://econpapers.repec.org/RePEc:nbr:nberwo:35617
- Identifier: RePEc:nbr:nberwo:35617
- Released: 2026-09-20
- First featured: Quant Letter No. 133 (2026-10-02): https://www.ml-quant.com/issues/2026-10-02/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Robert Prilmeier, René M. Stulz

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