{"id":16790,"date":"2026-10-26T12:33:26","date_gmt":"2026-10-26T07:03:26","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=16790"},"modified":"2026-10-26T12:33:27","modified_gmt":"2026-10-26T07:03:27","slug":"asset-cover-ratio-explained-how-much-security-really-backs-your-ncd","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/bond-news\/asset-cover-ratio-explained-how-much-security-really-backs-your-ncd\/","title":{"rendered":"Asset Cover Ratio Explained: How Much Security Really Backs Your NCD?"},"content":{"rendered":"
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\ud83d\udcdd Quick Summary:<\/div>\n

<\/span>The asset cover ratio, also called security cover, shows how many times the assets pledged as security exceed the amount a company owes its secured NCD holders, including principal and accrued interest.<\/strong><\/span><\/h2>\n<\/div>\n\n\n

Two NCDs can both be labelled \u201csecured\u201d and offer nearly the same coupon, yet protect your money very differently. The difference often lies in the asset cover ratio, a number that shows how much collateral stands behind the debentures compared with what the company owes. For Indian investors drawn to NCDs, understanding this ratio is one of the simplest ways to separate genuinely protected investments from ones that only sound safe.<\/p>

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