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cushion |
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Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service.
cushion 1. Period of time during which a bond cannot be called. Interest payments are guaranteed during the cushion, but not after, as the bond may be prematurely redeemed at any point after the call date. 2. A reserve account, or the function a reserve account serves, usually to pay off bad debt. 3. An advantageous debt-to-equity ratio, usually less than 40%. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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