debt service investment & finance definition
Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period.
The Debt Service Ratio, or debt service coverage, provides a useful indicator of financial strength. Standard & Poors reported that the total pool consisted, as of June 10, 2008, of 135 loans, with an aggregate trust balance of $2.052 billion.
Definition
Debt service constant
A factor that, multiplied by the original loan principal, yields the annual debt service payment (principal plus interest) required to amortize a loan.
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Level debt service - some related terms:
Debt service
Bonds
Nick Name: ...
Level debt service
Definition:
A municipal Charter provision that Debt payments must be relatively equal from year to year so that required revenue projections are easier. ...
Debt Service Fund - A fund into which the issuer makes periodic deposits to assure the timely availability of sufficient moneys for the payment of debt service requirements.
Debt Service
Cash required over a given period for the repayment of interest and principal on a debt.
Debt-To-Income Ratio - DTI ...
Debt service
Interest payment plus repayments of principal to creditors (retirement of debt).
Debt service coverage
The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.
debt service reserve fund
The fund into which are paid monies which are required by the trust agreement or indenture as a reserve against a temporary interruption in the receipt of the revenues or other amounts which are pledged for the payment ...
Debt service
Debt service is the combined cost of the monthly interest payments you must make to stay current on your outstanding loans and lines of credit.
Debt Service: Debt service refers to the semi-annual amount of money needed to pay the interest and principal payments on a bond issue.
Total debt service coverage : Cash flow from operations after taxes + rentals + adjusted interest / interest + rent +current maturities + sinking fund payments
Total risk : Systematic risk plus unsystematic risk.
Debt Service Fund (in accounting)
General Long-Term Debt Account Group (in accounting)
Debt Service (finance term) ...
See: Debt Service; Open End Indenture
Adjusted Basis
The base price that is used to assess capital gains and losses when a security is sold. When net proceeds are used for tax purposes, the commissions are deducted at the time of sale.
The conditions often include an historic and forecasted earnings coverage of debt service on the outstanding and the additional bonds. Additional bonds are usually, but not necessarily, on a parity with outstanding bonds.
debt service A series of periodic interest and principal payments on a debt. debt service coverage A measure of a company's or individual's ability to repay debt. Debt service...
Sources of revenue have included payments on various loans, credit card payments, mortgage payemts, rent, royalities, lotter payments, mortgage debt service, and rent from real estate.
Likewise, the ratings of revenue bonds are determined by the total "debt service", or how many times the cash specifically available to pay interest and principal payments on the company's bond issues could cover those payments.
In 1919, it became the Public Debt Service, and in 1940, the agency acquired its current name. The agency holds around 140 auctions of Treasury securities every year, and also makes savings bonds available on a continuous basis all over the country.
"Responding to Fed rate actions, the household debt service ratio was an unparalleled 13.6% in the second quarter, 1.3% greater than the old mark set three years ago.
This is accomplished by issuing a new bond issue and using the proceeds to purchase government obligations which will be escrowed and used to provide debt service on the original issue.
Cash Available for Debt Service
Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm.
Metrics include debt-to-income ratio (combined total of residential mortgages, lines of credit and other consumer loans as a percentage of personal disposable income); debt service ratio (interest and principal payments as a percentage of income) ...
Interest coverage is a measure of a company's ability to handle debt service, and tells investors whether the company is overburdened with debt. EBIT should be several times annual interest expenses, but the higher this ratio the better.
I realize that is cherry picking a high point in time for gold but the exponential government debt service accumulated in recent years and unprecidented money printing by the fed probably offsets this optimistic time reference.
The debt service was reduced by exchanging loans for longer-term fixed-income securities which had a discount from face value and/or bore interest at lower-than-market rates. The quality of the bonds was enhanced by guarantees.
In this instance, a debt instrument is conveyed from a foreign source of cheaper debt service to a country paying more for debt/per USD.
Advocates claim that such loans "stimulate production," but they ignore the cost of the required debt service, which burdens production.
Interest coverage tells us how easily a company can handle its debt service. The higher the interest coverage value, the easier it is for the company to pay back its debt.
 See also: Debt, Interest, Issue, Market, Income
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