HomeDefinitionsCompareDebt Negative pledge clauseThe financial definition for Negative pledge clause:A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Similar MatchesNegative amortizationNegative amortizationA loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later. Negative cash flowNegative cash flowOccurs when spending in a business is greater than earnings. Negative convexityNegative convexityA bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments. Further SuggestionsNegative covenantNegative duration Negative income tax Negative NPV tie in project Negative working capital Negative yield curve Click to compare definitions of Negative pledge clause Click to view definitions beginning ne |