A promise written into loan or bond documents restricting what the borrower may do — cap leverage, limit dividends, protect collateral. Lender protection that the last decade's "cov-lite" wave largely negotiated away; see leveraged loans.
Where Covenant is explained in depth
The definition above is the short version. These pages put it to work, in the order they use it most:
Information and education only. Every page, figure and
calculator on this site exists to explain how financial instruments work. Nothing here is
investment, tax or legal advice, a recommendation, or a valuation you can rely on.Full disclaimer