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

Debt service coverage

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.


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.


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).


Coverage

Coverage

See: Fixed-charge coverage


Debt service coverage ratio

Debt service coverage ratio

Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate.


Further Suggestions

Coverage initiated
extended coverage
Adequacy of coverage
Preferred dividend coverage
Overall market price coverage
Coverage ratios
Guaranteed replacement cost coverage insurance


 
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