Sentences with phrase «as bond issuers»

Just as bond issuers occasionally go bankrupt, there's a chance the company behind your «guaranteed» retirement income will go belly - up.
When you buy a bond, you are in effect lending a company or the government, referred to as the bond issuers, some money for a specific period of time, typically anywhere from less than one year to 20 years.
Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.
Of course, if you hold individual bonds to maturity, you may be able to ride out price fluctuations, knowing that as long as the bond issuer doesn't default, you will get your principal back at maturity and interest payments along the way.
As long as the bond issuer makes interest payments and the maturity value of the bond, there shouldn't be any problem.

Not exact matches

Institutional investors (such as pension funds) routinely insist on holding only highly - rated securities, so a downgrade can force them to sell that issuer's bonds.
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.
Amazon has been an infrequent issuer in the investment - grade bond market, with only $ 7.8 billion of debt outstanding as of June 30.
There are currently 10 major sectors that most investors use when breaking down the corporations and other issuers of securities such as stocks and bonds.
New issues have a significant presence in the bond market as issuers are constantly entering the market to «roll» their existing debt as well as create new debt.
High - yield bonds delivered another year of strong performance in 2017, with the benchmark Bloomberg Barclays US Corporate High Yield 2 % Issuer Capped Index returning 7.2 % as we approached year - end.
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.
As a result, we could see very heavy issuance through year - end as issuers try to squeeze in advance refundings or private activity bondAs a result, we could see very heavy issuance through year - end as issuers try to squeeze in advance refundings or private activity bondas issuers try to squeeze in advance refundings or private activity bonds.
As an experienced partner of institutional investors and financial service providers, oekom research identifies those equity and bond issuers whose businesses exercise a high level of responsibility towards society and the environment.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.
If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.
Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.
According to Standard & Poor's, about 40 emerging - market bond issuers were on the brink of default as of year - end 2016.
Our careful market analysis enables us to build diversified bond strategies that include a range of issuers, regions, sectors, and maturities as we seek to generate income while managing risk.
A 2014 Standard & Poor's report found that «corporate issuers see green bonds as an alternative financing avenue, offering access to a diversified investor base, plus a means of implementing and maintaining efficiency measures considered environmentally sustainable.»
Just as individuals have their own credit report and rating issued by credit bureaus, bond issuers generally are evaluated by their own set of ratings agencies to assess their creditworthiness.
Credit risk High yield bonds are subject to credit risk, which increases as the creditworthiness of the issuer falls.
But a bigger question looms: Will the much - publicized settlement change the rules of engagement between raters and corporate issuers of bonds, as well as the investors who buy them?
Bank of America Merrill Lynch raised a total of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate issuers rushed to take advantage of low rates ahead of the Federal Reserve's plans to withdraw stimulus measures.
We hope this guide will be useful to other green bond issuers in the Nordic region as well as in other geographies, and to the investor community.
For a complete listing of specific issuer information, such as official statements, issuer disclosures and municipal bond pricing, please visit the MSRB's Electronic Municipal Market Access (EMMA) at www.emma.msrb.org.
Bond ratings, which typically range from AAA / Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and / or Fitch, as an indication of an issuer's creditworthiness.
As mentioned earlier, an issuer may opt to call a bond if rates fall.
Here, we see bond to EFFR ratios recently falling — that's good news for bond issuers, but bad news for the Federal Open Market Committee (FOMC) as transmission of expected and actual EFFR increases has been dampened as EFFR passes through credit classes.
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.
«Use of bond cap is a statewide, year - long process and as in prior years, (New York CIty's) request for 2016 (bond) cap will be considered as part of a comprehensive review of requests submitted by all eligible issuers
Usually, issuers only redeem callable bonds early when it is beneficial to them as a business.
According to Bloomberg, as of June 15, 2016, more than 60 % of the issuers in the iShares J.P. Morgan USD Emerging Markets Bond Index are rated investment grade.
As I mentioned at the beginning of this article, a bond is essentially a contract between the issuer and the buyer.
High yield bonds are better known as junk bonds because the credit quality of the underlying bond issuer is low.
The S&P 500 High Yield Corporate Bond Index tracks the junk bonds of issuers of the S&P 500 and as the yields indicate, on average, they tend to be better quality than the bonds in the broader index.
Thinking that you have a deferred guaranteed annual income stream is decieving as the issuer can call the bonds and will discount the bond at a much higher rate than the coupon interest rate.
They're generally safe because the issuer has the ability to raise money through taxes — but they're not as safe as U.S. government bonds, and it is possible for the issuer to default.
The bond has been included among other apparel issuers, such as Coach, Ralph Lauren, and VF Corporation.
A bond issuer such as the UK or US government is seen as very safe, however a heavily - indebted company would be far riskier - investors demand a higher yield to invest in this sort of company.
Issuer name recognition and entity size seem to be factors in bond liquidity and as a result may be important considerations in index design.
As I said, the bond issuer holds all of the options here.
As detailed in the diagram below, almost two - thirds of the bonds in the index have issuers with MSCI ESG scores in the leader (AAA or AA) category.
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
You can think of it as you are giving loan to bond issuers.
Bonds are subject to interest rate risk (as interest rates rise bond prices generally fall), the risk of issuer default, issuer credit risk, and inflation risk, although U.S. Treasuries are backed by the full faith and credit of the U.S. government.
Our careful market analysis enables us to build diversified bond strategies that include a range of issuers, regions, sectors, and maturities as we seek to generate income while managing risk.
While bonds are often referred to as «fixed - income» securities they carry risks such as interest rate risk (the movement of interest rates that can positively or negatively affect the value of the bond at redemption) and default risk (the risk that the bond issuer will go bankrupt or become unable to repay the loan).
It refers to a bond issuer's ability to repay its debt as promised when the bond matures.
Below investment grade issuers, whose credit risks rating agencies view as a higher concern, and which comprise the S&P U.S. Issued High Yield Corporate Bond Index, are yielding 4.66 % (YTW).
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