March 3, 2026Open Access

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

Key Points

The article reveals that unclear loan terms in leveraged finance can lead to systemic crises.
Key evidence includes findings from an IOSCO consultation on the drafting of loan terms.
Analysis based on empirical research highlights the role lawyers play in contract clarity.
The implications of this study stress the need for clearer contracts to prevent future financial crises.

Abstract

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.

Connected Papers

Building similarity graph...

Analyzing shared references across papers

Discussion

Cite this study

Trevor; id_orcid 0009-0002-4026-1048 Clark (Thu,) studied this question.

www.synapsesocial.com/papers/69a75a46c6e9836116a1fe4e

Authors

Trevor; id_orcid 0009-0002-4026-1048 Clark

Actions

References and Citations

Connected Papers

Building similarity graph...

Analyzing shared references across papers

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

Key Points

Abstract

Citation Network

Connected Papers

Discussion

Cite this study

Authors

Actions

References and Citations

Citation Network

Connected Papers

Discussion