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Negative covenant |
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Negative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree.Negative covenant Similar MatchesN Negative AmortizationN Negative AmortizationA condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases. 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 cash flowNegative cash flowOccurs when spending in a business is greater than earnings. Negative NPV tie in projectNegative NPV tie in projectA negative-NPV infrastructure development project that a local government requires of a company engaged in a positive NPV investment project elsewhere in the country. 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. Further SuggestionsNegative yield curveNegative convexity Negative duration Negative income tax Negative working capital Negative amortization Negative externality Negative list |
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