However, such decisions should be weighed against all other factors, including regulatory capital requirements for certain financial institutions and the increased volatility in earnings or other comprehensive income that could result from temporary fluctuations in the market value of debt securities classified as trading or available-for-sale, respectively, and the impact of that volatility on the entity. For example, such volatility could result in debt covenant violations arising from unrealized holding losses when shareholders’ equity is included in debt covenant computations; however, as most entities’ loan documents have been modified to exclude other comprehensive income from debt covenant computations, this concern.
