The FT spreads itself today on the subject of covenant-lite loans. Worth reading - the issue was brought into prominence yesterday by Anthony Bolton, Fidelity's Special Situations fund manager, in his valedictory speech from the firm.

Risk will be covering the subject in more detail in its next issue, but in the meantime a quote from one lawyer I spoke to today: "The people making these loans are like the people who were buying dot-com shares in March 2000 – they think the only risk is being excluded from the market. I am 100% certain that one or two years from now, we will look back on this as a turning point."

I've yet to find anyone who can explain why this time it will all be different and the unsustainable will somehow be sustained - no doubt they exist, though.