Asset coverage test

 

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Asset coverage test

A bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum.



Asset coverage test

Similar Matches

Cash flow coverage ratio

Cash flow coverage ratio

The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.


Adequacy of coverage

Adequacy of coverage

A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.


Coverage

Coverage

See: Fixed-charge coverage


Preferred dividend coverage

Preferred dividend coverage

Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.


Initiate coverage

Initiate coverage

(1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position).


Further Suggestions

Guaranteed replacement cost coverage insurance
Coverage initiated
Debt service coverage ratio
extended coverage
Coverage ratios
Overall market price coverage
Debt service coverage


 
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