We often hear terms like the assets of the company being charged to the lender, this article on glossary of debt shall briefly describe some of the distinguished features of charges and its ranking. Also, we see how a high or low debt to equity ratio is so important in the event of liquidation.
When a […]

We normally see Covenants in agreement between the lender and the borrower.

In this article on Glossary of Debt, we look at some of the salient points of Covenants.

Covenants are conditions imposed on loans and bonds to protect lenders against defaults.

They normally stipulate things like:

Minimum level of asset […]

In my earlier articles on ratio analysis, asset cover and interest cover are commonly used by lenders to judge the safety of their lending in terms of security and earning ability to pay by the borrower respectively.
The article describe some of the features of these two ratio in this Glossary of Debt Section/Category.
For asset […]