Covenants Financial Glossary

What is it? See Bond Covenants

Finance Term Definition Added By: Kayla

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Other Similar Finance Terms:

Financial Term PER is See P/E

Financial Term Ceiling is The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage.

Financial Term external liquidity risk is A term defined by the Federal Reserve. The risk that a bank will experience funding problems as a result of factors outside of its direct control. The Federal Reserve defines three types of external liquidity risk. These are geographic (such as the premiums required on deposits at many Texas banks in the late 1980s), systemic (such as the adverse effects upon several large banks caused by the near failure of Continental Illinois Bank in 1984), or instrument-specific (such as the collapse of the perpetual floating-rate note market in 1986.)

Financial Term Buytolet is This is when you buy a property to rent it out rather than live in.

Financial Term Public Company is A company listed on the stock exchange and whose shares are available for public investment.