Find out why negative interest rate policies are failing because
bond buyers do not want a negative yield and saturated borrowers want to pay off debts.
Not exact matches
These
buyers are large investors — central banks, insurance companies, commercial banks and even index funds — that supposedly
do not care about returns, and will pay any price when transacting
bonds.
But don't overlook the point that, if you sell, you aren't handing your
buyer a Treasury
bond.
These
buyers are large investors — central banks, insurance companies, commercial banks and even index funds — that supposedly
do not care about returns, and will pay any price when transacting
bonds.
What that implies is that ordinary
bond buyers are willing to take on the risks that depositary institutions once
did.
Wall Street
does not exist to make the
buyers of the securities rich, rather, Wall Street exists to help companies get financing; the large profits of Wall Street come from the creation of stocks,
bonds, and other securities to institutions and individuals.
Thus, few
bonds will be sold unless they are in the hands of
buyers that don't have a formal balance sheet, or, when credit quality is deteriorating badly.
Prohibited acts.A credit services organization, a salesperson, agent, or representative of a credit services organization, or an independent contractor who sells or attempts to sell the services of a credit services organization shall not: (1) Charge a
buyer or receive from a
buyer money or other valuable consideration before completing performance of all services, other than those described in subdivision (2) of this section, which the credit services organization has agreed to perform for the
buyer unless the credit services organization has obtained a surety
bond or established and maintained a surety account as provided in section 45 - 805; (2) Charge a
buyer or receive from a
buyer money or other valuable consideration for obtaining or attempting to obtain an extension of credit that the credit services organization has agreed to obtain for the
buyer before the extension of credit is obtained; (3) Charge a
buyer or receive from a
buyer money or other valuable consideration solely for referral of the
buyer to a retail seller who will or may extend credit to the
buyer if the credit that is or will be extended to the
buyer is substantially the same as that available to the general public; (4) Make or use a false or misleading representation in the offer or sale of the services of a credit services organization, including (a) guaranteeing to erase bad credit or words to that effect unless the representation clearly discloses that this can be
done only if the credit history is inaccurate or obsolete and (b) guaranteeing an extension of credit regardless of the person's previous credit problem or credit history unless the representation clearly discloses the eligibility requirements for obtaining an extension of credit; (5) Engage, directly or indirectly, in a fraudulent or deceptive act, practice, or course of business in connection with the offer or sale of the services of a credit services organization; (6) Make or advise a
buyer to make a statement with respect to a
buyer's credit worthiness, credit standing, or credit capacity that is false or misleading or that should be known by the exercise of reasonable care to be false or misleading to a consumer reporting agency or to a person who has extended credit to a
buyer or to whom a
buyer is applying for an extension of credit; or (7) Advertise or cause to be advertised, in any manner whatsoever, the services of a credit services organization without filing a registration statement with the Secretary of State under section 45 - 806 unless otherwise provided by the Credit Services Organization Act.
In other words, if the
buyer's bid was accepted, he would pay less than the current
bond holder
did when the
bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt
bonds.
(1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit service organization has agreed to perform for the
buyer, unless the credit service organization has obtained a surety
bond of $ 10,000 issued by a surety company admitted to
do business in this state and has established a trust account at a federally insured bank or savings and loan association located in this state; however, where a credit service organization has obtained a surety
bond and established a trust account as provided herein, the credit service organization may charge or receive money or other valuable consideration prior to full and complete performance of the services it has agreed to perform for the
buyer but shall deposit all money or other valuable consideration received in its trust account until the full and complete performance of the services it has agreed to perform for the
buyer;
(1) A credit services organization, its salespersons, agents, and representatives, and independent contractors who sell or attempt to sell the services of a credit services organization may not
do any of the following: (a) conduct any business regulated by this chapter without first: (i) securing a certificate of registration from the division; and (ii) unless exempted under Section 13 -21-4, posting a
bond, letter of credit, or certificate of deposit with the division in the amount of $ 100,000; (b) make a false statement, or fail to state a material fact, in connection with an application for registration with the division; (c) charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for the
buyer; (d) dispute or challenge, or assist a person in disputing or challenging an entry in a credit report prepared by a consumer reporting agency without a factual basis for believing and obtaining a written statement for each entry from the person stating that that person believes that the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information; (e) charge or receive any money or other valuable consideration solely for referral of the
buyer to a retail seller who will or may extend credit to the
buyer, if the credit that is or will be extended to the
buyer is upon substantially the same terms as those available to the general public; (f) make, or counsel or advise any
buyer to make, any statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be untrue or misleading, to a credit reporting agency or to any person who has extended credit to a
buyer or to whom a
buyer is applying for an extension of credit, with respect to a
buyer's creditworthiness, credit standing, or credit capacity; (g) make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice, or course of business that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization; and (h) transact any business as a credit services organization, as defined in Section 13 -21-2, without first having registered with the division by paying an annual fee set pursuant to Section 63J -1-504 and filing proof that it has obtained a
bond or letter of credit as required by Subsection (2).
No credit services organization, its salespersons, agents or representatives, or any independent contractor who sells or attempts to sell the services of a credit services organization shall: (1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for or on behalf of the
buyer, unless the credit services organization has, in conformity with Section 10 of this Act, obtained a surety
bond issued by a surety company licensed to
do business in this State.
As a
buyer or seller of a
bond you need to acknowledge and accept the decision of whether the bid (offer to buy) or ask (offer to sell) is suitable for your current position;
Do you want to buy or sell at the price being offered?
In this case, strategy three can make more sense, as the set of
buyers taking the convertible stock and
bonds don't see the dilution.
Bond buyers need to learn to live with this, and employ buy - side analysts that don't take the opinion of the rating agencies blindly.
Only in times of crisis
do they adjust their standards to meet the needs of the
bond buyers.
So the
buyer of a 5 - year
bond with a 2 % original yield will earn pretty much 2 % over the five year term regardless of what is
done.
And
buyers of nominal
bonds are taking risks that investors in TIPS don't — the risk of unexpected inflation.
(1) Charge a
buyer or receive from a
buyer money or other valuable consideration before completing performance of all services the credit services organization has agreed to perform for the
buyer, unless the credit services organization has obtained in accordance with § 2404 of this title a surety
bond in the amount required by § 2404 (e) of this title issued by a surety company authorized to
do business in this State or established and maintained a surety account at a federally insured bank or savings and loan association located in this State in which the amount required by § 2404 (e) of this title is held in trust as required by § 2404 (c) of this title;
(1) Charge a
buyer or receive from a
buyer money or other valuable consideration unless the credit repair services organization has obtained, in accordance with R.S. 9:3573.4, a surety
bond issued by a surety company authorized to
do business in this state or has established and maintains a trust account at a federally insured bank or savings association located in this state in which the amount required by R.S. 9:3573.4 (E) is held in trust as required by R.S. 9:3573.4.
While a premium
bond still makes coupon payments at the stated higher coupon rate, both a premium
bond's seller and
buyer do not actually pay interest expense and receive interest income, respectively, in the amount of the coupon payments.
If the
bond does default, the insurer must pay the
buyer the face value of the
bond.
At this point I don't like using
buyer's agency contracts because frankly if the only reason a client is continuing to work with me and show loyalty is because of a piece of paper that
bonds us I have failed miserably in my service.