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The term 'covenants' in finance specifically refers to legal agreements or conditions that are included in bond contracts to protect the interests of bondholders. These covenants outline the specific actions that the borrower (the issuer of the bonds) must take, as well as restrictions to ensure that the borrower maintains a certain financial health or creditworthiness during the life of the bond.

Covenants serve to mitigate risk for bondholders by providing guidelines that the issuer must follow, such as maintaining certain financial ratios, restrictions on additional debt issuance, or requirements for maintaining insurance on assets. By adhering to these agreements, the bond issuer demonstrates its commitment to fulfilling its obligations, which can help enhance investor confidence and stabilize market perceptions of the issuer's creditworthiness.

In contrast, investment strategies refer to methods of allocating funds, revenue generation methods focus on ways of generating income, and market regulation policies pertain to government or institutional rules aimed at controlling market behaviors. These terms do not encompass the specific legal commitments and protections that covenants provide within the context of bond financing.