Covenants in Bond Indentures
Bondholders restrict management’s actions in
order to minimize the possibility of default.
These restrictions are called covenants.
§ Sinking Funds
§ Limitations on Further Debt issuance
§ Subordination of Further Debt
§ Negative Pledge
§ Dividend Restrictions
§ Collateral
§ Restrictions on Sale and Leaseback