A covenant is a promise in a bond’s terms that restricts what the issuer may do (borrow more, pay dividends, sell assets, merge) or requires it to maintain some condition. Seniority is a claim’s rank in the order of payment in insolvency: secured before senior unsecured before subordinated before equity. The recovery rate is the share of a bond’s face value its holders receive after the issuer defaults.
Quantitative Finance · Glossaire
Qu'est-ce que « Covenant, seniority, recovery rate » ?
Aussi appelé : covenant · seniority · recovery rate