Meketa Connectives | A Game of Loans

November 2024

Liability management exercises and their impact on credit investment managers.

For those unfamiliar with liability management exercises (LMEs), these are strategies that companies use to restructure their debt obligations—often by exchanging, repurchasing, or renegotiating terms—in order to reduce financial strain, manage cash flow more effectively, and improve their overall financial health as an alternative to bankruptcy. But why might this be of interest to an institutional allocator?