Sentences with phrase «because bond holders»
Because bond holders are «senior» to stock holders (that is, they must be paid before common shareholders), bonds are often described as safer investments than shares of common stock.
http://www.HyllandCapital.com/ Not exact matches
That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.
After all, the long - term bond holders should demand a higher yield because, with time, risk and uncertainty increases.
Ditto for bond holders, DiNapoli said, because legislation was passed to cover debt and interest payments.
Because this calculation is only necessary to determine the bondholder's basis, it need not be done by the bondholder until sale or other disposition of the bond and, if the holder holds the bond until maturity, it need never be done.
While bonds offer holders a creditor stake because they are lenders for the company, stockholders have an equity stake, meaning they are owners.
Because this CYM method is also utilized for other purposes related to tax - exempt bonds, including the treatment of premium and «market discount,» we will calculate the CYM on the above bond to demonstrate how the holder's basis is increased.
Because everyone is losing out on companies like AIG... except for the bond holders, you sort of have to worry that when everything shakes out, the rules for bonds may change.
In other words, if the buyer's bid was accepted, he would pay less than the current bond holder did when the bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt bonds.
Because bonds offer a fixed - rate of interest, holders can more easily compare potential gains (or losses) due to interest rate environment fluctuations.
Because, even though bond investing is safer than other forms of investment, sudden changes may occur in the bond market that increases the interest rates that are being paid to bond holders.
Because of his appearances at industry events and his frequent webcasts, advisors and investors feel like they know Gundlach, just as they felt like they knew Bill Gross, the previous holder of the «bond king» title.
In general, many bond and bond funds are considered to be lower risk because, for the most part, a bond holder will receive the principal on the bond as long as the bond is held to maturity.
Syndicates want to place bonds entirely with long term holders if they can; that is their goal, because it means they priced it right, leaving little money for mere speculators.