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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 MatchesExtended coverageExtended coverageInsurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment. 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. Guaranteed replacement cost coverage insuranceGuaranteed replacement cost coverage insuranceA policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation. 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. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Further SuggestionsCoverageDebt service coverage Coverage initiated Cash flow coverage ratio Initiate coverage Adequacy of coverage Debt service coverage ratio |
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