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Negative cash flow |
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Negative cash flowOccurs when spending in a business is greater than earnings.Negative cash flow Similar MatchesNegative income taxNegative income taxA proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level. Negative durationNegative durationOccurs when the price of an MBS moves in the same direction as interest rates. Negative pledge clauseNegative pledge clauseA bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Negative equityNegative equityA situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property. Negative yield curveNegative yield curveWhen the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing. Further SuggestionsNegative working capitalNegative convexity Negative covenant N Negative Amortization Negative amortization Negative externality Negative NPV tie in project Negative list |
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