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

Guaranteed replacement cost coverage insurance

Guaranteed replacement cost coverage insurance

A policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation.


Coverage

Coverage

See: Fixed-charge coverage


Overall market price coverage

Overall market price coverage

Total 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.


Extended coverage

Extended coverage

Insurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment.


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.


Further Suggestions

Coverage initiated
Coverage ratios
Cash flow coverage ratio
Debt service coverage ratio
Debt service coverage
Initiate coverage
Preferred dividend coverage


 
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