What are debt covenants? How to measure them?

Posted on by Anouk Khan

Definition A debt covenant is an agreement or a ‘promise’ set by the lender to ensure that companies or borrowers  operate within certain restrictive parameters. They are also known as financial or banking covenants. The purpose of debt covenants is not to burden the borrower but rather to: Protect lenders against default eventsLimit downside by … Continue reading What are debt covenants? How to measure them?

What You Need to Know About Commercial Real Estate Debt

Posted on by Anouk Khan

Just like getting a mortgage from the bank to finance your residential property, Commercial Real Estate Debt can also help developers and investors with their business goals. The main purpose of this loan from borrowers is to increase the capital available for investment and to help them diversify their investments. Without a fully functioning debt … Continue reading What You Need to Know About Commercial Real Estate Debt