Broker-dealer and Contingent covenant: Difference between pages
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imported>Doug Williamson (Updated.) |
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''Loan documentation.'' | |||
A contingent covenant is a covenant in borrowings documentation which is contingent on a particular event or measure. | |||
A common example is a contingent covenant linked with the borrower's credit rating. | |||
The existence of such covenants is a very significant source of risk for borrowers which are close to the boundary where the covenant might be triggered, for example following any further deterioration in the borrower's credit rating. | |||
== See also == | == See also == | ||
* [[ | * [[Credit rating]] | ||
* [[ | * [[Covenant]] | ||
* [[ | * [[Maintenance covenant]] | ||
* [[ | * [[Ratings trigger]] | ||
* [[ | * [[Springing covenant]] | ||
Revision as of 21:41, 13 November 2017
Loan documentation.
A contingent covenant is a covenant in borrowings documentation which is contingent on a particular event or measure.
A common example is a contingent covenant linked with the borrower's credit rating.
The existence of such covenants is a very significant source of risk for borrowers which are close to the boundary where the covenant might be triggered, for example following any further deterioration in the borrower's credit rating.
