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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. Cash flow coverage ratioCash flow coverage ratioThe 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 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. Debt service coverage ratioDebt service coverage ratioEarnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate. Initiate coverageInitiate 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 SuggestionsDebt service coverageCoverage ratios extended coverage Preferred dividend coverage Guaranteed replacement cost coverage insurance Overall market price coverage Coverage |
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