Sentences with phrase «bond by the bondholder»

Not exact matches

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.

«Whereas companies routinely reward their shareholders with higher dividends, no company in the history of finance, going back as far as the Medicis, has rewarded its bondholders by raising the interest rate on a bond.»

Current bondholders with fixed coupons become increasingly harmed by dropping bond prices as their securities approach maturity.

If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.

The new plan also offers a major bow to bondholders and Wall Street credit rating agencies, who might be worried that state bonds — with payments guaranteed by the state's income tax revenues — could face future payment issues if Albany is to rely less on income tax collections.

By the same token, you can not default on the bond, as that would not be fair to bondholders, many of whom buy school bonds as a hedge against inflation and for their retirement.

In general, the effect of the election is to slightly decrease the rate at which the market discount is deemed to accrue, which will generally produce a beneficial result for the bondholder by reducing the amount of ordinary income recognized on a sale of the bond prior to maturity.

Because this calculation is only necessary to determine the bondholder's basis, it need not be done by the bondholder until sale or other disposition of the bond and, if the holder holds the bond until maturity, it need never be done.

If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.

So we the taxpayers are going to eat a ton of bank losses that should instead be borne first by stockholders and bondholders This program should be labeled the Pimco bailout plan, since the giant bond fund holds a lot of bank debt.

Bondholders can, of course, get back the face value of their bonds by holding on to them until they mature.

This notion is further supported by the inherent risk premium for stocks over bonds because stockholders are behind bondholders in the first lien on a company's resources in bankruptcy.

For bondholders, usually a trust company appointed by the company to protect the security behind the bonds and to make certain that all covenants of the trust deed relating to the bonds are honoured.

When the government needs to circulate new notes in the economy, the bonds issued by the government is bought back from the bondholders, thus providing investors with money that will then start circulating in the market.

This recent widening of spreads on our credit default swaps could impact the perception of our financial condition by MBIA Corp.'s insured bondholders and counterparties and could affect their willingness to purchase MBIA Corp.'s insured bonds and to continue to enter into transactions with MBIA Corp..

These bonds are bought by investors on the open market for less than their face value, and the company uses the cash it raises for whatever purpose it wants, before paying off the bondholders at term's end (usually by paying each bond at face value using money from a new package of bonds, in effect «rolling over» the debt to the next cycle, similar to you carrying a balance on your credit card).

As a result of the intervention by the Federal Reserve and the U.S. Treasury, even the bondholders of Bear Stearns stand to receive 100 % repayment of both interest and principal on their bond investments.

That said, it is true that the bondholders of major banks include pension funds, insurance companies, mutual funds, foreign investors and other holders that would be adversely affected by a writedown in bond values.

The asset swap spread (also called the gross spread) is the aggregate price that bondholders would receive by exchanging fixed rate bonds for floating rate bonds using the swaps market, mainly used to reduce interest rate risk.

But the bondholders, which included a unit of Chicago - based CNA Financial Corp. and municipal bond funds managed by Putnam Investments and Vanguard Group Inc., earlier this year sold their stake to the Walton Street joint venture, according to court records.