AIG wrote massive amounts of this insurance on bonds backed by American residential mortgages,
allowing holders of these bonds to treat them as very safe and stable AAA rated investments.
A put option
allows the holder of a bond to «put,» or present, the bond to an issuer (or trustee) and demand payment at a stated time before the final stated maturity of the bond.
Not exact matches
The people
of Ireland have been truly penalised by the ECB's refusal to
allow continental
bond -
holders to take a haircut.
bonds that contains a provision
allowing the
holder to exchange the
bond for a specified number
of shares
of a different security (usually common stock) issued by the same company that issued the
bond; terms
of conversion are disclosed at the time the
bond is issued
After reviewing product design, which
allowed holders a one time option to increase their rate over the term
of the annuity, and doing a little bit
of game theory work, I said, «Here's the good news: given what we know about policyholder behavior and what we know about
bonds, this is a cinch to hedge.»
Mike Greeff, CEO
of Greeff Christies International Real Estate, is also optimistic on the effect on the market: «Any type
of easing in interest rates will encourage individuals to get involved in the property sector, as well as bring relief for current
bond holders in that it will have two possible effects: it could either create additional disposable income in their budgets, or it will
allow for a higher than required
bond repayment which can in essence take years off your
bond.»