From Ambiguous Contracts to Systemic Crisis: How Lawyers Shaped Leveraged Finance

The collapse of First Brands Group has raised concerns that the next global financial crisis could originate in the leveraged finance sector. Relying on the findings of an IOSCO consultation and the author’s own empirical research, this article considers the extent to which a lack of clarity in the drafting of loan terms, and hence the lawyers who held the pen, could be responsible.