Negative Covenant
A bond covenant preventing certain activities, unless agreed to by the bondholders.
NEGATIVE COVENANT - See: COVENANT.
NEGOTIATED SALE - The sale of a new issue of municipal securities by an issuer directly to an underwriter or underwriting syndicate selected by the issuer.
Negative covenant
A bond covenant that limits or prohibits certain actions unless the bondholders agree.
Negative duration
Occurs when the price of an MBS moves in the same direction as interest rates.
Bond covenant
A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.
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 actions (negative covenants). ...
be prohibited from issuing more debt by using certain assets as collateral. Likewise, the borrower may be required to issue reports to bondholders on certain dates. Also called protective covenant, restrictive covenant. See also negative covenant, ...
A positive covenant requires certain actions, and a negative covenant limits certain actions. [Harvey] bond discount The difference between the purchase price and face value of a bond when the face value exceeds the purchase price.
 See also: Covenant, Bond, Issuer, Issue, Order
  
|
RSS
