As a bond holder, you are considered a «creditor» and your return is limited to interest payments and the return of the money you've invested.
Not exact matches
Holders of Venezuelan
bonds are meeting with each other and considering forming committees, advisers and fund managers told Reuters,
as questions mount about the feasibility of President Nicolas Maduro's proposal to restructure $ 60 billion of debt.
And not just
as a counterweight to more volatile equities — the steady decline in interest rates since the 1980s caused
bond prices to rise, giving their
holders» RRSPs a nice tailwind.
Although the retailers have been negotiating with
bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent of the retailers it follows
as a Ca or Caa credit risk.
Any productivity gains would have to be allocated to equity owners at the expense of
bond holders and workers who would merely tread water or lose ground
as the economy expands.
The slated deal comes
as Lynas progresses talks with Mt Kellett and the other 9 convertible
bond holders, including Fortress Investment Group, about amending the terms of the
bond facility and extending the maturity.
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.
As in 2010 - 11 under Dominique Strauss - Kahn, French banks are major
holders of Greek
bonds (including via their ownership of Greek banks).
One unintended consequence of eternal QE may be that
holders of balanced, passive portfolios don't see the same defensive performance from
bonds as they have historically.
Non-asset
holders were punished — their bank deposits now generate little or no income, and they were forced to move into riskier assets, such
as stocks,
bonds, real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed loaning out money at 0 % cause?).
Other agenda's such
as cross currency rate manipulation, supporting domestic export industries, etc. are high on the list of priorities for foreign
holders of US
bonds.
As of the end of the first quarter of this year, the foreign community is the largest
holder of US Treasuries and corporate
bonds.
We define intrinsic value
as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security
holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such
as a US Treasury note or
bond» Lou Simpson
A capital gain occurs when an asset such
as a stock or
bond increases in value, making it worth more than what the
holder initially paid for it.
From Wikipedia: A long position in a security, such
as a stock or a
bond, or equivalently to be long in a security, means the
holder of the position owns the security and will profit if the price...
The cash paid at regular intervals of time to
holders of
bonds, Certificates of Deposit, or interest - bearing accounts,
as compensation for lending money to the interest payer.
As bonds mature during the year leading up to the termination date, the proceeds will be reinvested in cash and cash - equivalents and when the ETF terminates, it will make a cash distribution to unit
holders equivalent to the ETF's Net Asset Value.
If the OID did not increase the
holder's tax basis during the period the
bond is outstanding, a sale of the
bond for an amount in excess of $ 4,628 would produce taxable capital gain to the bondholder, even if the increase in value arose solely
as a result of the accretion of OID.
We can all wonder what would happen if the thirty - year Treasury
bond fell from favor
as a speculative vehicle, causing these short - term
holders to rush to sell at once and turning thirty - year Treasury
bonds back into eating sardines.
the
holder's tax basis in the
bond (the amount the
holder paid for the
bond originally, including any additions to such basis, such
as OID
as discussed in the following section).
This rule does not apply in the case of a tax - exempt
bond in order to ensure that the full amount of OID is treated
as tax - exempt interest to the
holder and that the
holder does not have an «artificial» gain on the sale of the
bond.
Even though the interest paid on a municipal
bond is tax - exempt, a
holder can recognize gain or loss that is subject to federal income tax on the sale of such a
bond, just
as in the case of a taxable
bond.
You are free to sell this income stream for a current gain, or you can continue to receive this income in perpetuity,
as will any future
holder of this
bond.
The optimal outcome is that you get paid principal & interest to the stated maturity from this
bond that is deep in junk territory, CCC + / Caa1 - rated, where the proceeds of the deal don't increase the value of the firm, but are paid
as a dividend to the equity
holders.
Sometimes when a company's common stock continues to perform poorly, in a capital restructure,
bonds may be converted to preferred shares, which gives
bond holders continued income payments
as dividends.
Print in all capital black letters such things
as your
holder number, all
bond numbers you are cashing in, how much of each
bond you plan to cash in, your contact information, and how you want to be paid (i.e. direct credit to a bank account).
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.
The account
holder can use the money in these accounts to invest in all types of financial securities: such
as stocks,
bonds and mutual funds.
As each
bond reaches maturity, the trust
holder receives payments until the fund dissolves.
Interest to the
holders opting for non-cumulative
Bonds will be paid from date of issue up to 31st July / 31st January,
as the case may be and thereafter at half - yearly for period ending 31st July / 31st January on 1st August and 1st February.
If there is any chance a
holder of individual
bonds may need to sell their
bonds and «cash out», interest rate risk could become a real problem (conversely,
bonds» market prices would increase if the prevailing interest rate were to drop,
as it did from 2001 through 2003.
The
holders of the 10 %
bonds would receive their principal back (and probably a small call premium), but they would then have to find other investments, none of which would probably pay
as well
as the Company XYZ
bonds.
As long as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity dat
As long
as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity dat
as all due payments have been made, the issuer has no further obligations to the
bond holders after the maturity date.
the disclosure of certain enumerated events affecting a municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax - exempt status of the security; (7) modifications to rights of securities
holders; (8)
bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information
as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and education
However, since the company can start repaying the
bonds any time after 30 years,
bond holders can actually start receiving payments
as early
as 2023.
As owners of the company, stockholders are paid after all creditors, including
bond holders, are paid.
As mentioned, a
bond pays a fixed rate of interest during its life — and when a
bond matures, the
holder gets the
bond's face value.
As of the end of the first quarter of this year, the foreign community is the largest
holder of US Treasuries and corporate
bonds.
Municipal
bonds can be significantly affected by political or economic changes
as well
as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security
holders, including in connection with an issuer insolvency.
As they came into the market,
bond yields fell and
bond prices, which move in the opposite direction to yields, began to gain ground, providing a nice capital gain to
holders.
The account
holder can use the money in the IRA to invest in all types of financial securities: such
as stocks,
bonds and mutual funds.
We have been long - term
holders if iShares 7 - 10 Year Treasury (IEF), SPDR Muni
Bond (TFI)
as well
as iShares S&P Preferred (PFF).
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.
Account
holders do not have to purchase
bonds as interest is earned with deposits.
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.
Also, the Greek precedence indicates that EU
bond holders can loose 75 % of their value, and can not be regarded
as riskless assets.
As a policy holder I imagine that you have a pretty solid position in the capital structure of these companies, but not to make things overly complicated: what happens if we use the yield on investment grade US corporate bonds as a discount rat
As a policy
holder I imagine that you have a pretty solid position in the capital structure of these companies, but not to make things overly complicated: what happens if we use the yield on investment grade US corporate
bonds as a discount rat
as a discount rate?
As a result, the discount
bond holder would have a significantly higher after - tax return.
As the balance shifts towards
bonds, the desire of
bond holders will be prevent inflation and the pressure to prevent inflation will increase.
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.