TrendLines Topical Report: Lens on Loopholes Q1鈥�26 Update: Share of Index Loans With J.Crew/Serta/Chewy (Full & Qualified)/Envision/Pick-Your-Poison Loopholes
Steve Miller: Executive - Covenant Review
7 April 2026
- How covenant loopholes are distributed across the JP Morgan Leveraged Loan Index and where concentration is rising.
- What current data reveals about the Share of Index Loans With Covenant Loopholes among stressed and lower priced credits.
- Why provisions such as J Crew Serta Chewy and Envision matter for lender protections and value preservation.
- How private equity backed borrowers compare with the broader index in exploiting documentation flexibility.
- Where investors can identify heightened risk from pick your poison and weakened MFN protections.
This report updates the share of the JP Morgan Leveraged Loan Index with named covenant loopholes associated with
specific borrowers鈥擩.Crew, Serta, Chewy and Envision鈥攁s of March 31, 2026, based on Covenant Review鈥檚 extensive
database, which covers 98% of JP Morgan BSL Index loans. In addition, we provide the latest read of what percentage
of Index borrowers have a pick-your-poison provision as well as those that can issue new first-lien debt under freeand-
clear incremental tranches without triggering an MFN because either (1) the MFN has expired or (2) the document
carves out the F&C tranche from yield protection.
Fill out the below form to view the full article:
Please note that we can only respond to valid business email addresses and the interview is already available to clients.
Recently Published
Research
AllCovenant-ReviewAutosUS CR Quarterly Q1SovereignsBasicLevFin-InsightsTelecommunicationsMay GMUFinancials糖心视频-ResearchUtilitiesCase Studiesshow-homeshow-initiation page-homeMunicipalsSLRsTMTAsset Management ResourcesPharmaceuticalsJune GMUEnergyResearchGaming/LeisureWebinar Related ResourceIndustrialsPoliticsMediaUS Special Sits OutlookConsumerTariffsSpecial SituationsEuro Autos: Barbarians at the GatesCorporatePrivate CreditAerospace/DefenseU.S. Autos Expert PanelCovenantsBondsReal EstateEU Special Sits OutlookStrategyPost PetitionServicesJuly GMUESGChemicalsIranAsia in Focus 2H26ESG-HomeEmerging MarketsBanksEM OutlookOutlooks-HomeTransportationConstructionEMEA CR Quarterly Q2TechnologyInsuranceAsia in focus webinarUS CR Quarterly Q2ManufacturingEMEA CR Quarterly Q1Global Credit for ME Investors
Energy: Oil Companies Venturing into Venezuela
Energy: Oil Companies Venturing into Venezuela
Read More
US Bankruptcy: Hughes Satellite Systems judge to order examiner appointment to investigate dealings with parent EchoStar; scope of probe subject to further hearing
US Bankruptcy: Hughes Satellite Systems judge to order examiner appointment to investigate dealings with parent EchoStar; scope of probe subject to further hearing
Read More
Thames Water: Rowing Back On Thames?
Thames Water: Rowing Back On Thames?
Read More
NVDA: More Growth, More Commitments