How To Use and Calculate It

How To Use and Calculate It

What Is the Debt-Service Coverage Ratio (DSCR)? The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash flow to pay current debt obligations. The DSCR shows investors whether a company has enough income to pay

What It Is and How It Works

What It Is and How It Works

What Is the Credit Default Swap Index (CDX)? The credit default swap index (CDX), formerly the Dow Jones CDX, is a benchmark financial instrument made up of credit default swaps (CDS) that have been issued by North American or emerging market companies. The CDX was the first CDS index, which was created in the early 2000s and

Downgrade Definition

Downgrade Definition

What Is a Downgrade? A downgrade is a negative change in the rating of a stock’s expected performance, issued by an analyst for a financial services firm. The analyst is indicating that the company’s future prospects have weakened. Many financial services firms employ analysts to provide research, including rating stocks with a buy, hold, or

DownREIT Definition

DownREIT Definition

What Is DownREIT? DownREIT is a joint endeavor between a real estate owner and a real estate investment trust (REIT) for the purpose of acquiring and controlling real estate. Key Takeaways A DownREIT is a partnership agreement between an REIT and a real estate owner that enables deferring of tax on sale of appreciated real