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agent.covenant

Covenant breaches, seen
a quarter before the test date.

A covenant breach found on the test date is a crisis. Found a quarter early, it is a conversation. Covenant Watch re-tests DSCR, debt yield and LTV on every GL or Argus refresh, against the actual covenant language, forecasts which tests are tightening, and proposes a cure plan with the math behind it.

01 · How it works Watch · Do the work · Stop

It tests the covenants on every refresh, not once a quarter

The agent that changes the seat the most is Covenant Watch. Instead of a quarterly compliance check, it re-runs the tests every time the underlying numbers move, reads the forward trajectory, and surfaces a tightening test while there is still time to act on it.

It watches

A GL or Argus refresh

Any refresh of the general ledger or the Argus model is the trigger to re-test every covenant.

It does the work

Re-tests, forecasts, proposes

It re-tests DSCR, debt yield and LTV against the actual covenant language, forecasts which are tightening, and proposes cure options.

Then it stops

The controller confirms the cure

The cure plan is a proposal. A controller confirms it, and nothing reaches the lender without a named human sending it.

The pipeline
A data refresh in, a forecast and a cure plan out
1
GL / Argus refresh
New ledger or model data triggers a full covenant re-test.
2
Re-test covenants
DSCR, debt yield and LTV computed against the actual covenant language.
3
Forecast breach
The forward trajectory projects which tests tighten and when.
4
Propose cure
Cure options drafted with the math, then held for the controller.
Re-testing on every refresh turns a test-date surprise into a quarter of lead time.
02 · See it work One run, every figure cited

Ask Covenant Watch where you stand. It returns the current tests, a forecast of which are tightening, and a proposed cure plan with a drafted lender note, each figure traced to the covenant clause and the ledger.

W Covenant Watch · AI agent
Tenant: Asset Management
Where are we against covenants this quarter?
Covenant Watch

Block 37 DSCR at 1.24×, drifting toward the 1.20× test on Aug 1. breach: forecast

Driver: rate reset on the senior loan, partly offset by the Northwind expansion.

Proposed cure: a $0.6m partial paydown holds DSCR at 1.27× through the test.

Drafted a lender heads-up note for your review. Nothing sent.

Sources · 4
Loan · Block 37§7 (DSCR)
GL · Block 37L118
Argus · Block 37v6
Lease · Northwind§3
dscr.fc.aug = 1.19×
cure → 1.27×
03 · The boundary It drafts and computes, then it waits

It can forecast the breach and draft the note. It cannot send it.

Covenant Watch can prepare a complete cure plan and a lender note; it cannot contact your lender. That boundary is structural, not a setting you can forget to switch on. A named controller confirms the plan, and a person sends the note.

The boundary, in one line

Trigger: a GL or Argus refresh. Human approval: a controller confirms the cure plan. What it cannot do: contact the lender or file anything without a person sending it. The full architecture, controls and audit trail live on the security & governance page.

See the platform on your own portfolio.

Bring a live deal, a fund or a stack of documents and watch the graph light up across your own systems, extract, simulate and author, with every number traceable to source. No migration, nothing leaves your tenant, and nothing acts without your sign-off.