Sentences with phrase «bonds are loans»

Since bonds are loans to a company or government, the bonds of issuers who are believed to be safe pay lower interest than those of less credit - worthy firms and governments.

Bonds are loans that can be bought or sold.

Bonds are loans that investors make to companies or governments.

To investors stocks represent fractional ownership of underlying businesses and bonds are loans to those businesses.

Bonds are loans taken out by governments, corporations and even public works programs with the promise to pay interest every year.

In short, bonds are loans that investors make to governments, companies, pools of mortgage owners or many other types of issuers.

Bonds are a loan to the government or corporation.

Bonds are loan contracts involving creditors and debtors.

A bond is a loan.

In other words, a bond is a loan sold or issued by the borrower (issuer) and purchased by the lender (investor).

Financial Condition: A bond is a loan, and the ability of bond's issuer to repay its debt is of prime importance.

Technically, a bond is a loan made from an investor to a bond issuer.

Not exact matches

Prices of the riskiest portions of collateralized loan obligations (CLOs) have fallen 50 % as of the end mid-December since mid-year, and are now trading at $ 0.25 for every dollar that investors have put in the structured bonds.

Total issuance of leveraged loans and high yield bonds is down by nearly $ 140 billion this year compared to 2014, to about $ 575 billion.

Finance startup Bond Street issues loans to small businesses, many of which have less - than - ideal credit, and it's hatched a plan to stand out in the crowded online lending sector.

All companies approved for a loan through Bond Street are guaranteed to receive their capital within less than one week, as opposed to the weeks or months they'd typically have to wait by going to a traditional bank.

While Gross wouldn't disclose how many WeWork companies would actually qualify for Bond Street loans, he says that the number is «meaningful.»

The average Bond Street loan size is $ 180,000, with interest rates starting at 6 percent.

Based on where bonds are trading today, the market is saying about 5 % of those corporate loans will go bust, or roughly $ 35 billion worth at the six biggest banks.

On average, high - yield bonds are trading at 86 cents on the dollar, meaning the market is predicting a 14 % loss on the loans.

Deutsche Bank and or / its affiliate (s) has a significant Non-Equity financial interest (this can include Bonds, Convertible Bonds, Credit Derivatives and Traded Loans) where the aggregate net exposure to the following issuer (s), or issuer (s) group, is more than 25m Euros.

«What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment - grade corporate bonds,» said Collins.

In addition to the loan from Tennenbaum Capital Partners, SoundCloud also has the option to borrow an additional $ 70 million in convertible bonds, according to Swedish tech site DiGITAL, which was first to report the filings.

Bonds are like loans given to an institution.

Packaging loans as bonds could bolster the company's share price, WSJ suggests, by diversifying its revenue stream beyond fee income, which is now its bread and butter.

Currently, investors are touting the possibility of the central bank being forced to follow up its cheap loans to banks — known as TLTRO — and asset - backed securities and conduct Federal Reserve - style government bond purchases to boost inflation.

In addition, interest rates on U.S. Treasury bonds are used as barometers for determining global economic health [9], and as pegs for many other interest rates, including American mortgage and student loan rates [10, 11].

Bond holders, banks, and IMF bear responsibility for having made irresponsible loans to Greece, so it is not right for them to force yet more austerity on Greece, says Michael Hudson.

For instance, Mishkin (2012:1 and 24) explains that «in our economy, nonbank finance also plays an important role in channeling funds from lender - savers to borrower - spenders... Finance companies raise funds by issuing commercial paper and stocks and bonds and use the proceeds to make loans that are particularly suited to consumer and business needs.»

The debt, part of a bond deal sold by Citigroup Inc. and Deutsche Bank AG in March 2007, was handed off to a firm specializing in troubled loans.

- bonds lending - In order to prevent securities lending from affecting overnight bank reserves, loans will continue to be collateralized with Treasury bills, notes, and bonds rather than cash.

Many small - and medium - size banks are increasingly raising money for loans, bond purchases and other investments by issuing wealth management products, and even some largely unregulated companies have begun issuing wealth management products.

In actuality, while the skill set necessary to make intelligent decisions can take years to acquire, the core matter is straightforward: Buy ownership of good businesses (stocks) or loan money to good credits (bonds), paying a price sufficient to reasonably assure you of a satisfactory return even if things don't work out particularly well (a margin of safety), and then give yourself a long enough stretch of time (at an absolute minimum, five years) to ride out the volatility.

When you buy government bonds, you are loaning money to the government, which agrees to pay you back with interest.

Included in the EMBI Global are U.S. - dollar - denominated Brady bonds, Eurobonds, traded loans, and local - market debt instruments issued by sovereign and quasi-sovereign entities.

Based on BlackRock's long - term assumptions, some of the better return - to - risk ratios are in high yield bonds, EM dollar - denominated debt and bank loans.

The rates that have responded most significantly to lower borrowing costs are short - term loans for financial speculation, above all for derivatives and related buying or selling of stocks and bonds on margin — enormous gambles on which way the dollar, the stock market and interest rates may go.

We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

Two centuries ago, French followers of Count Henry St. Simon outlined an industrial system that was to be based mainly on equity financing (stocks) rather than debt (bonds and bank loans).

International payments are dominated by capital flows for direct investment, bonds and stocks, bank loans and speculation.

The goal of yield maintenance is to allow the conduit lender to reinvest the money returned from the borrower, plus a penalty fee, into bonds or other investments and receive the same cash flow as if the loan hadn't been paid off early.

So this is like a loan which is being secured by a bond and this transaction actually has two legs.

The devastating LDC debt crisis of the 1980s, which began in August 1982 when the Mexican government announced that it was unable to service its obligations to foreign banks, ended only in 1990, when these loans were exchanged for a nominal amount of Brady bonds equal to only 65 % of the original notional amount of outstanding loans.

Mortgage - backed securities are bonds whose cash flows are backed by individual mortgage loans.

NexPoint Strategic Opportunities Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities.

It doesn't matter if you are a fixed income investor considering purchasing bonds issued by a company, an equity investor considering buying stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan, or a vendor thinking about extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight into the health of company.

NexPoint Strategic Opportunity Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans, bonds, debt obligations, mortgage backed and asset backed securities, collateralized debt obligations and equities.

For example, an interest rate swap is a derivative whereby two parties exchange, or «swap,» interest payments on a bond; one side might get a constant 3 percent each payment period, while the other gets the LIBOR rate (a benchmark rate that some banks charge each other for short - term loans).

• 1/2 of self - employment tax (self - employed individuals are required to pay «payroll» taxes that an employer would otherwise take; these extra taxes can be deducted from AGI, but are included in MAGI) • Student loan interest • Tuition and fees deduction • Qualified tuition expenses • Passive income or loss • Rental losses • IRA contributions and taxable Social Security payments • Exclusion for income from U.S. savings bonds • Exclusion for adoption expenses (under 137)