Sentences with phrase «as bond holders»

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 datAs long as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity datas 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 ratAs 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 ratas 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.
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