Features of long term debt securities

Restrictive covenant: It is the provision in the agreement for a loan t that defends the interests of the lenders through limiting the management actions. The covenant is basically a provided agreement which helps to protect the lenders from management action over their process of lending money and which the management might feel otherwise during the issue. Trustees: It is an individual or even institution like a commercial bank that represents the interest of the bondholders. A trustee appears to be the representation of the bondholders and who acts to ensure that the loan agreement is honored and no harassing the bondholders. Serves their interest in fulfillment of the mandate. Fitch Group: It is a nationally recognized statistical rating organization that mainly concentrates on the securities ratings.