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Positive covenant (of a bond) |
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Positive covenant (of a bond)A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.Positive covenant (of a bond) Similar MatchesPositive externalityPositive externalityA beneficial externality; that is, a beneficial effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to act. Examples are the attractiveness of well-kept farms for the tourism industry (a production externality) and reduced contagion of disease due to vaccines (a consumption externality). Positive listPositive listIn an international agreement, a list of those items, entities, products, etc. to which the agreement will apply, with no commitment to apply the agreement to anything else. Contrasts with negative list. Positive carryPositive carryRelated: Net financing cost Positive convexityPositive convexityA property of option-free bonds that the price appreciation for a large downward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates. Positive floatPositive floatSee: Float Further SuggestionsPositive Sum RelationshipExtraordinary positive value Positive Positive yield curve |
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