are known as covenants(negative and affirmative covenants) Negative covenants include restrictions on ... ecurities Over the counter market(OTC) OTC market Once issued, sovereign debt typically trades in quote ... operating profits and recurring revenues Low levels of leverage High coverage of debt service payments
monitoring and restrictive covenants. A key finding from our analysis is that the existence of the ... debt contract incentive compatible: that is, it aligns the incentives of the borrower with those of ... enforcement and will work to shrink the moral hazard problem inherent in debt contracts.SummaryThe presence