- The contract that specifies the rights and obligations of the bond issuer and the bondholder of a fixed income security.
What is AFFIRMATIVE COVENANTS?
-In layman words, it is what the issuer MUST do. If the bond issuer fail to do it, it is considered default.
What is NEGATIVE COVENANTS?
- In layman words, it is what the issuer cannot do, is a restriction on the bond issuer.
