How LMEs Redistribute Value Across the Capital Stack

Panelists discuss how LMEs function as mechanisms for redistributing value across the capital structure, creating divergent outcomes for investors depending on their position. The conversation covers the rise of non-pro rata creativity, the growing use of minority creditor litigation in Europe, and the historically high re-default rates of LME transactions. The difficulty of traditional LTV analysis in today's environment is highlighted as a core challenge for credit managers.