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Negative pledge clause |
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Negative 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 pledge clause Similar MatchesNegative cash flowNegative cash flowOccurs when spending in a business is greater than earnings. Negative covenantNegative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree. Negative working capitalNegative working capitalOccurs when current liabilities exceed current assets, which can lead to bankruptcy. Negative convexityNegative convexityA bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments. Negative 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. Further SuggestionsNegative listNegative yield curve Negative income tax negative equity Negative duration N Negative Amortization Negative externality Negative NPV tie in project |
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