Performance Metrics

Interest coverage

Also known as: IC test

status: draft

A test comparing available interest collections or net income to required interest payments.

What to watch

A weak IC test can trap cash or shut off reinvestment before principal losses appear.

Referenced in 24 topics

Advanced waterfall mechanics mechanics Broadly syndicated loan CLOs asset-classes Cash flow modeling accounting-valuation Cell tower and data center ABS (digital infrastructure) asset-classes Collateralized loan obligations (CLOs) structures CRE CLOs asset-classes Entity-level triggers mechanics Evaluating portfolio quality and performance playbooks Infrastructure debt asset-classes Market data and public datasets market-landscape Middle market CLOs asset-classes NAV facilities and subscription lines structures Ongoing portfolio management operations-lifecycle Performance triggers mechanics Portfolio monitoring for ABF funds operations-lifecycle Rail cars and rolling stock asset-classes Rated note feeders structures Repackaging structures structures Structural tests (OC/IC) mechanics The waterfall mechanics Treasury management for multi-facility originators playbooks Trigger negotiation strategies mechanics Trigger remediation strategies mechanics Triggers, tests, and performance events mechanics