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Covenant Tripper
Covenant headroom over time—tripwire quarter, binding covenant, and cure math in one view.
CovenantsHeadroomDownsideCredit
Impact Highlights
Headroom timeline
Pass/fail clarity
Tripwire detection
Breach quarter
Binding covenant
Identification
Cure math
Fix scenarios
Before vs After
Before
- • Models that stop at cashflows without covenant layer
- • Manual tracking of headroom across multiple covenants
- • No clear view of which constraint binds first
- • Ad-hoc cure analysis when breaches emerge
After
- • Headroom over time with pass/fail and thresholds
- • Tripwire detection for exact breach quarter
- • Binding covenant identification at each period
- • Cure math: EBITDA uplift, debt paydown, relief
- • Scenario shocks to test downside resilience
Key Decisions
1
Leverage capacity is contractual—covenant dynamics must be explicit and explainable
2
Built for credit monitoring and underwriting scenario work
3
Institutional credit work requires understanding constraints, not just cashflows
What I'd do next (given more time)
- →Add amendment scenario modeling
- →Build multi-covenant waterfall visualization
- →Include historical covenant compliance tracking