Covenant-lite loans removed some of those safeguards, creating the risk that default, when it occurred, would be more painful for creditors.

ECONOMIST: What isn't known about bad debts

As a veteran of the 2007-2008 turmoil, I am focused on one in particular: "covenant-lite" loans.

WSJ: Current Account: Cheap Junk Leads to Expensive Mistakes

Issuers also took advantage of their technical advantage to structure 55% of new loans as covenant-lite.

FORBES: February Analysis - US Leveraged Loan Market

Issuers continued to press their technical advantage to structure more than half of new loans as covenant-lite.

FORBES: March Analysis, US Leveraged Loan Market