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 Matches

Positive externality

Positive externality

A 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 list

Positive list

In 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 carry

Positive carry

Related: Net financing cost


Positive convexity

Positive convexity

A 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 float

Positive float

See: Float


Further Suggestions

Positive Sum Relationship
Extraordinary positive value
Positive
Positive yield curve


 
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