Related Words

Debt: Means any money that is owed or due to someone else.

Debt Service Coverage: Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service Parity Approach: The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.

Debt Securities: The complete repayment of debt. See: Sinking fund.

Debt Market: A bond covenant that restricts the firm's ability to incur additional indebtedness in some way.

Debt Capacity: A default on debt and obligations by a major financial institution that disrupts the stability of the economic system.

Debt-Asset Ratio: A financial ratio that measures the percentage of a farm operator’s assets that are financed by debt. For example, a ratio of 0.4 means that for every $100 of assets the operator has $40 of . . . View Full Definition

Debt Instrument: The amount of borrowing that leasing displaces. Firms that do a lot of leasing are curtailed in their debt capacity.

Debt To Equity Ratio: A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Al . . . View Full Definition

Debt To Tangible Equity Ratio: The ratio of total debt to owners' equity, used as a measure of leverage and ability to repay obligations.