Sentences with phrase «bond issuers pay»

Bond issuers pay a fee to financial information companies to have their bonds rated.

The bond acts as an IOU, so once it matures the bond issuer pays you back in full plus interest.

Not exact matches

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.

Private independent rating services such as Standard & Poor's, Moody's Investors Service and Fitch Ratings Inc. provide these evaluations of a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion.

Bond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princiBond funds typically own a number of individual bonds of varying maturities, so the impact of any single bond's performance is lessened if that issuer should fail to pay interest or princibond's performance is lessened if that issuer should fail to pay interest or principal.

Greylock, a $ 990 million hedge fund run by Willem J. «Hans» Humes, says in a filing with the Securities and Exchange Commission that international junk bonds are «generally considered to be predominantly speculative with respect to the issuer's capacity to pay,» and that defaulters sometimes end up shielded by «principles of sovereign immunity.»

Callable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of par value.

Call risk Many corporate bonds may have call provisions, which means they can be redeemed or paid off at the issuer's discretion prior to maturity.

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and / or returning principal at maturity.

Note that this only works if the issuer remains healthy enough to pay off the bonds at maturity and you don't need the cash sooner than whenever your bond matures.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.

ARS are long - term bonds or preferred stock; therefore, ARS may be owned and pay coupons or dividends until the final maturity or in perpetuity to the extent that the issuer can, in fact, pay coupons or dividends.

If the bond included a «call provision,» the issuer can redeem it early, too — in order to issue new bonds at a lower interest rate, for example — but usually pays you a little more than the face value to do so.

«The same thing holds with bonds — so you have to look at the credit rating of the issuer, [which can indicate] whether it can keep its promise [to pay you back with interest].»

Bonds issued with a Moody's rating pay meaningfully lower interest rates than those without a Moody's rating, and the price paid to Moody's is much lower than the interest savings the issuer realizes.

As a bond investor, you are basically taking a view of where interest rates are going along the yield curve and the issuer's ability to pay the money promised.

Because the traditional bond comes with interest paying structure which is not permissible under the Islamic financial system, the issuer of a Sukuk bond would sell the certificate to an investor group, who then rents it back to the issuer for a predetermined rental fee.

Buying individual bonds exposes investors to credit risk, the possibility that a bond issuer will default on their debt (i.e., that they won't pay back the lender).

Callable or redeemable bonds are bonds that can be redeemed or paid off by the issuer prior to the bonds» maturity date.

When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

If you buy a bond, you can simply collect the interest payments while waiting for the bond to reach maturity — the date the issuer has agreed to pay back the bond's face value.

The amount that the holder of a bond will be paid by the issuer at maturity, which can differ from the bond's value on the open market.

That way the issuer can save money by paying off the bond and issuing another bond at a lower interest rate.

By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.

Bond ETFs are subject to interest rate risk, which is the chance that bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declBond ETFs are subject to interest rate risk, which is the chance that bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to declbond to decline.

When a bond is purchased for its face amount the bond issuer agrees to pay the bond holder a fixed amount of interest for a specific period of time.

For bonds, purchasing on the primary market means you buy directly from the bond's issuer and pay face value.

At the other end, high - yield bonds pay a higher interest rate than Treasury securities, but there's a substantial risk that the issuer won't be able to keep up with payments or pay back your principal.

The bond issuers promise to pay you back for the full loan amount, also called par value, face value, maturity value or principal, and usually with regular interest payments on the par value.

If the issuer in fact chooses to redeem the bond at such time, the additional $ 300 paid by the issuer to the holder is considered a «premium» and will produce a $ 300 long - term capital gain to the holder.

Most bonds have an interest rate, also called the coupon or nominal rate, applied to the par value that the bond issuer will pay to the bondholder on a semiannual basis.

If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.

After time has lapsed (i.e. the bond has matured), the issuer is obliged to pay interest (the coupon) and / or repay the principal.

Redemption price: Price the issuer must pay if they wish to redeem bonds before maturity or retire preferred stock shares.

The issuer offers a bond that matures in 5 years time and pays 10 % coupon.

So for example, when a commercial bond is issued, the issuer promises to pay $ X per period.

That doesn't mean the amount the issuer must pay when a bond matures changes, but it does change the amount you will be able to sell a bond for in the secondary market if you need the money before the maturity date.

That means you can sell it for nearly $ 10,000, since that's what the issuer will pay to whoever holds the bond.

In addition to the credit worthiness of the issuer, the price of a bond on the secondary market is determined by several factors including the interest it pays, its face value and its duration or how long it is until it matures and the issuer repays the amount borrowed.

Despite the ongoing price change in any bond market, if a bond is held to maturity, investment principal is paid back by the issuer.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event; generally expressed as an annual percentage of the bond's face value

That's because bond issuers must pay a competitive interest rate to get people to buy their bonds.

Investors that purchase bonds are paid interest by the bond issuer.

Choosing bonds from different issuers protects you from the possibility that any one issuer will be unable to meet its obligations to pay interest and principal.

U.S. Treasury bonds are considered to be the safest investment available, while high - yield, junk bonds have significant risk of the issuer failing to pay interest or repay principal.

The bond is a debt security, under which the issuer owes the holders a debt and (depending on the terms of the bond) is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date.

Bonds are not necessarily issued at par (100 % of face value, corresponding to a price of 100), but bond prices will move towards par as they approach maturity (if the market expects the maturity payment to be made in full and on time) as this is the price the issuer will pay to redeem the bond.

the price paid for fixed ‐ income securities purchased directly from the issuer; for example, a Treasury Auction bond purchased directly from the U.S. government would cost $ 1,000 at face value