Leverage meaning

Links to useful intercreditor materials This table sets out the principal checks a junior lender should make when assessing a simple intercreditor agreement between senior secured lenders, junior secured lenders and unsecured subordinated creditors. It is designed for readers with limited familiarity with intercreditor arrangements. The table highlights the core, commonly encountered points in a straightforward secured bilateral corporate loan and does not attempt to capture every potential negotiation issue, nor matters arising in specialist or more complex deals such as those in the leverage finance market. What is reasonable will vary with the nature of the transaction, the identity of the lender and the parties’ relative bargaining power. For specialist intercreditor topics, see the materials referenced below... Introductory materials Practice Note: Introductory guide to Intercreditor Agreements, covering typical provisions found in intercreditor agreements. Practice Note: How to draft and negotiate intercreditor arrangements in loan transactions, offering introductory guidance on drafting and negotiation. Precedent: Intercreditor deed-single company, a precedent suitable for a straightforward...

In this issue Sustainable finance and ESG round up LIBOR and benchmarks Lending Security Sustainable finance Derivatives Regulation for derivatives lawyers Regulation for banking lawyers Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG round up Sustainable finance and ESG monthly round-up—11 August 2025. This Finance Group update features: (1) an International Sustainability Standards Board consultation on proposed changes to the Sustainability Accounting Standards Board Standards and guidance for IFRS S2, (2) the IFRS Foundation’s near-final guidance on reporting uncertainties within financial statements, and (3) new United Nations Environment Programme Finance Initiative guidance for banks on climate adaptation and resilience. For more, see News Analysis: Sustainable finance and ESG monthly round-up—11 August 2025. LIBOR and benchmarks On 23 July 2025, the UK Supreme Court issued a landmark judgment, overturning the fraud convictions of traders Tom Hayes and Carlo Palombo. Ellen Gallagher, partner at Vardags Ltd,...

In this issue Prudential requirements Financial crime and sanctions Consumer protection Investigations, enforcement and discipline Ex-Barclays executive loses appeal over FCA ban on senior job Regulation of capital markets Banks and mutuals Investment funds and asset management Regulation of insurance Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Prudential requirements EBA updates systemic importance indicators for G-SIIs. The European Banking Authority (EBA) has refreshed the set of 13 systemic importance indicators, together with the underlying data, for the EU’s 33 largest institutions whose leverage ratio exposure measure exceeds EUR 200 bn. The release also provides revised figures and data items reflecting recognition of the Banking Union and of institutions within the Single Resolution Mechanism. This dataset is updated on an annual cycle. See: LNB News 27/08/2024 20. Financial crime and sanctions IEA publishes discussion paper on...

In this issue: Authorisation, approval and supervision Prudential requirements Risk management and controls Financial crime and sanctions Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Regulation of derivatives Banks and mutuals Consumer credit, mortgage and home finance Payment services and systems International—financial services and related sectors Fintech and cryptoassets LexTalk®Financial Services: a Lexis®Nexis community Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Authorisation, approval and supervision HM Treasury issues a policy statement describing its intended approach to the regulation of Appointed Representatives within UK financial services. The paper suggests targeted adjustments to enhance oversight and bolster consumer protection, while preserving the regime’s function in fostering competition and innovation. See: LNB News 11/08/2025 28. The Financial Conduct Authority has updated its Conduct Rules webpage to clarify...

This Practice Note This Practice Note explores the use of non-contractual mechanisms by software suppliers to halt or restrict the operation of on-premise software in business-to-business licences, the resulting legal considerations, and the real-world impact on drafting relevant software licences. It introduces a range of disabling tools: Time bombs Logic bombs Back door/trap door Fork locks Remote control and switching off, or ‘deprovisioning’ Where a customer breaches licence terms, or fails to pay licence or support charges, the supplier can pursue legal action. Yet litigation brings expense and uncertainty, and may strain the customer–supplier relationship. As a result, a supplier may favour a more immediate, practical approach: deploying disabling devices to stop the software from running, triggered remotely or automatically by the supplier. For most developers, such features are straightforward to create and embed. Activating (or threatening to activate) these tools can give the supplier significant leverage over customers, especially where the software is critical to the business. That...

What is repo? A repo, the market shorthand for a 'repurchase transaction', is an arrangement whereby one party (the seller) sells an asset to another (the buyer) with a simultaneous contractual undertaking that the seller will repurchase the asset from the buyer on a future date for a specified price agreed between both parties in advance. Any asset capable of being transferred from one person to another may, in principle, be the subject of a repo transaction. The assets most commonly used in repos are debt securities (bonds), equity securities (shares) and other financial assets, including loans and commodities. However, commodity repos can raise distinctive documentary, structural and legal issues, which are not addressed in this Practice Note. For guidance on commodity repos, see Practice Note: Commodity repo transactions and true sale considerations...

This Practice Note outlines high-level details of the prudential capital framework that applies to UK banks and building societies, as well as to large, systemically important investment firms designated by the Prudential Regulation Authority (PRA) under Article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order, SI 2013/556. The requirements are contained in: the onshored Capital Requirements Regulation, Retained Regulation (EU) 575/2013 (UK CRR), and associated technical standards—for information, see Practice Note: UK Capital Requirements Regulation (UK CRR)—technical standards [Archived] PRA Supervisory Statements (SSs), and the PRA Rulebook In the PRA Rulebook, banks, building societies and designated investment firms are collectively termed ‘CRR firms’. For information on the regulatory capital requirements applying to non-designated UK investment firms, see Practice Note: The UK investment firms prudential regime (IFPR). Significant upcoming changes to regulatory capital requirements Revocation of UK CRR under FSMA 2023 Sections 1 and 4 of the Financial Services and Markets Act 2023 (FSMA...

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