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Asset coverage test |
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Asset coverage testA 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 MatchesCoverage initiatedCoverage initiatedUsually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community. Adequacy of coverageAdequacy of coverageA test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Overall market price coverageOverall market price coverageTotal assets less intangibles divided by the total of the market value of the security issue and the book value of liabilities and issues having a prior claim. This is used to determine how much of the market value of a certain class of securities would be covered in liquidation. Coverage ratiosCoverage ratiosRatios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio. Further SuggestionsDebt service coverageInitiate coverage extended coverage Debt service coverage ratio Cash flow coverage ratio Guaranteed replacement cost coverage insurance Coverage |
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