|
|
Negative covenant |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Negative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree.Negative covenant Similar MatchesNegative working capitalNegative working capitalOccurs when current liabilities exceed current assets, which can lead to bankruptcy. 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 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 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. 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 externalityNegative cash flow Negative convexity Negative list Negative income tax N Negative Amortization Negative amortization Negative duration |
|
|
|