Here's one of those dirty little Wall Street secrets: Debt investors who are a bit of a pain--meaning they tend to be sticklers about enforcing covenant rights or come across as too activist for some--may find themselves blacklisted from bank loan deals. These blacklists are not necessarily new. But they are apparently becoming more common. The phenomena reflects one area where private equity funds and hedge funds often find themselves on opposing sides. The conventional wisdom holds that private equity funds force issuers to agree to a blacklist as a way to keep some aggressive hedge funds from owning their debt. The concern of course is that the fund will cause trouble, especially in default cases.

For more:
- here's the Investment Dealers' Digest article (For FierceFinance readers)