Meaning of “asset coverage” in the English Dictionary

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"asset coverage" in Business English

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asset coveragenoun [ U ]

uk us

ACCOUNTING, FINANCE a measure used by investment funds (= companies that make money by investing in shares, etc.) that shows the amount of their invested assets in relation to their payments to investors:

The market conditions may change and the fund might not meet its asset coverage requirements.

(Definition of “asset coverage” from the Cambridge Business English Dictionary © Cambridge University Press)