Final answer:
The items in an indenture limiting issuer actions to protect bondholders are known as protective covenants. These legal provisions help in managing investment risk by ensuring that the company adheres to certain operational guidelines.
Step-by-step explanation:
The items included in an indenture that limit certain actions of the issuer in order to protect bondholder's interests are referred to as the protective covenants. Protective covenants are essentially rules set forth in a bond's indenture, a formal debt agreement, that place limitations on the actions of the issuer to ensure the safeguarding of bondholders' privileges. These can include conditions such as maintaining certain financial ratios or restrictions on selling core assets, which are designed to maintain the company's ability to fulfill its obligations to bondholders.
Restrictive covenants can also be relevant in real estate, where they limit the use of property to maintain the value and character of the area. In the context of bonds, such covenants help manage the risk for investors, as they require the company to stay within certain operational boundaries, providing a form of insurance on the issuer's stability and ability to repay the bond upon maturity.