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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