In the first two months of 2017,
bond defaults amounted to CNY 4.1 billion from Dongbei Special Steel, Dalian Machine Tool, and Inner Mongolia Berun.
Not exact matches
Highly rated companies that are financially strong and have massive
amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer
bonds with lower yields since investors are confident that the companies won't
default (i.e., miss interest or principal payments).
In
bond investing, face value, or par value, is the
amount paid to a bondholder at the maturity date, given the issuer does not
default.
Daniel Wallick: The point with asymmetry is with a
bond, there's a limited
amount of upside you can get, but you can go down to zero on the bottom end if you
default.
Of course, they also come with higher
amounts of credit risk, the risk that a
bond issuer will
default on their coupon or principal payments.
But it is to be noted that there have been cases where government
bonds have
defaulted while paying interest and principal
amount.
When we had the last spike, the credit
default swap market had notional
amounts smaller than the corporate
bond market.
Unlike shorting stocks, where the
amount of shorting is generally limited by the float of the common stock, there can be more credit
default swaps than
bonds and loans.
Once the notional
amount of CDS trading versus cash
bonds gets up to a certain multiple, the technicals of the CDS trading decouple from the underlying economics of the
bond, whether the
bond stays current or
defaults.
However, at its discretion, a court may direct refunds of a court diversion fee to the student, or may direct Crash and Learn to forward the fee to the court for a
bond or other
amount due the court, up to the
amount of the
default for the citation.