Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Eric's career includes extensive work in both public and corporate accounting with ...

A covenant in accounting is a promise just like any other covenant. In accounting, covenants deal with financial promises. A company enters into a covenant as part of an agreement with an investor or ...

What Is a Covenant-Lite Loan? A covenant-lite loan is a loan issued with fewer financial restrictions and performance requirements for the borrower, offering more flexibility than a traditional loan.

The recent bankruptcy of Energy Future Holdings did not just lift the overall loan default rate to a four-year high of 4.64% by amount – it also drove up the historical default experience of loans ...