Incurrence covenant and Ranking: Difference between pages

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imported>Doug Williamson
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''Loan documentation.''
1.  ''Credit risk - insolvency.''


A covenant which has to be met initially and on certain other trigger events, for example raising new borrowings, acquisitions or dividend payments, where the event is permissible if the covenant test is met after the event has been taken into account.  
Priority ordering of payouts in a insolvency.
 
Ranking is particularly important when there are insufficient assets to satisfy all claims.
 
 
2.  ''Bank regulation - liquidity.''
 
The ordering of liquidity quality of assets, for regulatory liquidity quality.
 
 
3.  ''Other evaluations.''
 
Any other systematic ordering by quality or importance.




== See also ==
== See also ==
* [[Covenant]]
* [[An introduction to equity capital]]
* [[Maintenance covenant]]
* [[Credit rating]]
* [[Credit risk]]
* [[Dilution]]
* [[Greenium]]
* [[Hierarchy]]
* [[Insolvency]]
* [[Level 1B liquid assets]]
* [[Merit order]]
* [[Net promoter score]]
* [[Obligation]]
* [[Order]]
* [[Pari passu]]
* [[Pari passu clause]]
* [[Preference]]
* [[Rank]]
* [[Ratings]]
* [[Report card]]
* [[Senior]]
* [[Seniority]]
* [[Statement of affairs]]
* [[Structural subordination]]
* [[Subordination]]
* [[Time subordination]]
* [[Unsecured creditor]]


[[Category:Treasury_operations_infrastructure]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 20:56, 23 July 2022

1. Credit risk - insolvency.

Priority ordering of payouts in a insolvency.

Ranking is particularly important when there are insufficient assets to satisfy all claims.


2. Bank regulation - liquidity.

The ordering of liquidity quality of assets, for regulatory liquidity quality.


3. Other evaluations.

Any other systematic ordering by quality or importance.


See also