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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 MatchesNegative amortizationNegative amortizationA loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later. Negative externalityNegative externalityA harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality). 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 durationNegative durationOccurs when the price of an MBS moves in the same direction as interest rates. Negative 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. Further SuggestionsNegative convexityNegative cash flow Negative list Negative pledge clause Negative NPV tie in project negative equity N Negative Amortization Negative working capital |
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