covenant investment & finance definition
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The rules on a loan agreement that require certain financial conditions be met or prohibit other financial actions by the borrower.
Definition
Covenant
A prescription for action in a loan document.
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Covenants
Definition:
Provisions in a Bond indenture or Preferred stock agreement that require the bond or preferred stock Issuer to Take certain specified actions (affirmative covenants) or to refrain from taking certain specified ...
COVENANT or BOND COVENANT - The issuer's enforceable promise to perform or refrain from performing certain actions. With respect to municipal securities, covenants are generally stated in the bond contract.
Covenants See Bond Covenants
CP See commercial paper
Credit Scoring A procedure for assigning scores to companies or individuals on the basis of the risk of default.
Covenant Agreement in a loan or bond contract concerning the borrower's future conduct. Covenants may involve such things as the agreement to maintain certain balance sheet ratios or to adhere to certain IMF program requirements.
covenant
The issuer's pledge, in the financing documents, to do or to avoid from doing certain practices and actions.
cover bid ...
Bond Covenant: A bond covenant is a legal requirement related to the sale of a bond issue. Bond covenants include rules for the payment of debt service, investment of bond proceeds, retirement of debt and remedies for default.
Covenants
Rules made in a contract where a party to the contract promises to do or not to do specified things (typically with repercussions).
Credit ...
Rate covenant
A provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.
Rate of exchange
See: Exchange Rate ...
A bond covenant preventing certain activities, unless agreed to by the bondholders.
rate covenant A covenant in a municipal revenue bond that specifies how it will be determined... rate lock A commitment by a lender guaranteeing a specified interest rate for a specified period of time. Also known as lock-in.
Easement Â- Profit
Covenant running with the land
Equitable servitude
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[OTS] affirmative covenant A bond covenant that specifies certain actions the firm must take.
Try to identify the catalyst that is likely to drive the stock lower - weakness in the industry sector suggesting an upcoming profit warning or dividend cut or looming redundancies or downsizing programme or breach in banking covenants?.etc ...
If you've read "Christ Through Me" Then you know that you are no longer under the law of the old covenant, but you are under the new covenant law--forgiven by grace.
Acceleration clauses help to define the terms of the loan covenant. There are a number of terms that can be included in an acceleration clause.
Second, because of the covenants included in debt-oriented instruments, companies tend to discontinue bond interest or preferred dividends only as a last resort.
Before buying a callable bond, it is important that you inspect the bond covenant which lists all the terms of the bond issue.
In order to protect shareholders, many companies incorporate a minimum asset coverage ratio; this is usually established by covenant. This ensures that the company cannot overextend itself financially or enter into unwise expenditures.
A company like Swift, Covenant Transport, or Werner is more likely to see loss of business due to high costs of fuel. That business is more likely to move to train.
EBITDA is widely used in loan covenants. The theory is that it measures the cash earnings that can be used to pay interest and repay the principal. Since interest is paid before income tax is calculated, the debtholder can ignore taxes.
Out of Line - Out of Line is overstating revenue for a mortgage bank or other financial institution to keep it in compliance with a key financial covenant. A mortgage bank's institutional credit overstated with the Securities and Exchange Commission.
The motives may include misleading investors and remaining within the terms of debt covenants.
A stipulation stating that if an issuer is in default on other borrowings, such non-payment is also considered default in respect to the issue with the cross default covenant.
Yet despite calling the above promises “a covenant' during the 1932 elections, FDR and his VP built on Hoover’s policies.
If my assessment of this is correct these Greek debt 'transactions' strike me as likely doing little more than buy more time without really solving much of anything by way improving Greece's covenant to pay its resultant outstanding debts.
 See also: Issue, Interest, Debt, Market, Rally
  
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