DSCR
Also known as debt service coverage ratio
The debt service coverage ratio is a property's net operating income divided by the debt payments due on it.
Why It Matters
It is the test of whether a building services its own debt, and it is where higher interest rates hit refinancing first.
Related Terms
- NOINet operating income is the rental income of a property after operating costs, before financing and tax.
- MortgageA mortgage is a loan secured against property, repaid over a long period, where the lender can take the property if payments stop.
- LTVLoan to value is the size of a loan as a percentage of the value of the property securing it.
- Credit RiskCredit risk is the risk that a borrower fails to pay interest or repay principal as agreed.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
Global Economy
Fed Raises Rates as Inflation Keeps Pressure on the U.S. Economy
The Federal Reserve raised its benchmark interest rate to 3.75%–4.00% as persistent inflation keeps monetary policy under pressure.
Markets
Why A 5% U.S. Treasury Yield Could Reshape Global Markets
The 10-year is nearing a level that reprices mortgages, deals and every distant future earning.
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