Bond covenant

Bond covenants are agreements within a bond that can be negative or positive from the point of view of the bondholder, for example, a negative bond covenant is a bond covenant that prohibits certain activities unless approved by the bondholders.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **Bond covenant** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.