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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 MatchesGuaranteed 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. CoverageCoverageSee: Fixed-charge coverage 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. Extended coverageExtended coverageInsurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment. 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. Further SuggestionsCoverage initiatedCoverage ratios Cash flow coverage ratio Debt service coverage ratio Debt service coverage Initiate coverage Preferred dividend coverage |
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