Protecting investor capital requires having a granular, bottom-up understanding of both company structure and the risks carried by its borrowers. Once this is achieved, Metrics Credit Partners can then negotiate terms in order to reduce its risk of loss.
Andrew Lockhart , Partner at Metrics, explains how establishing appropriate controls, such as putting in place a loan-to-valuation covenant to restrict the level of debt that a company or project is exposed to, further alleviates this risk.
“As a lender, it’s our responsibility to have a very detailed understanding of the company we lend to. So, everything we do is very much a bottom-up analysis in terms of risk.”
Watch the brief video below to get an understanding of how establishing the right controls and taking out the appropriate security can better protect your investment.
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Metrics is alternative asset manager specialising in fixed income, private credit, equity and capital markets. To find out more about what Metrics does please click here
This video has been prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416146 (Metrics).
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