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

Coverage initiated

Coverage initiated

Usually 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 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.


Preferred dividend coverage

Preferred dividend coverage

Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.


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.


Coverage ratios

Coverage ratios

Ratios 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 Suggestions

Debt service coverage
Initiate coverage
extended coverage
Debt service coverage ratio
Cash flow coverage ratio
Guaranteed replacement cost coverage insurance
Coverage


 
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