Sentences with phrase «bond holder did»

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.

And bond holder do have a fiduciary prerogative.

Not exact matches

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?).

It's not only that Beijing is telling them to do so, HNA seems to be severely strapped for cash to meet it's huge debt obligations, mostly to local Chinese banks, but also bond holders.

Public debt charges represent legal obligations to bond holders, so don't expect any major changes there.

The debt goes to whoever buys the bonds, and the US government either pays up when bond holders redeem their bonds or it doesn't.

Like bonds, however, ETNs have a maturity date (although they don't pay interest), at which time the holder will be paid the current principal amount.

Short - term bond fund holders have to do the same thing.

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.

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.

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.

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.

These bonds don't make periodic interest payments and will only make one payment (the face value) to the holder at maturity.

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.

In a normal bankruptcy (who knows what the government might do) the bond holders are some of the first to get paid, so they usually come out pretty well.

Junk bond holders have been beaten up by the one risk they did not want to see: credit spreads widening.

A security (stock or bond) which does not have the owner's name recorded in the books of the issuing company nor on the security itself and which is payable to the holder, i.e., the holder is the deemed owner of the security.

In effect, zero coupon bond holders are required to pay taxes on money to which they don't yet have access.

Account holders do not have to purchase bonds as interest is earned with deposits.

The holder doesn't receive the interest until the bonds are cashed in.

Do you know what Larry MacDonald was comparing when he said that holders of equity mutual funds would have been better off investing in bonds?

After reviewing product design, which allowed holders a one time option to increase their rate over the term of the annuity, and doing a little bit of game theory work, I said, «Here's the good news: given what we know about policyholder behavior and what we know about bonds, this is a cinch to hedge.»

Insurers do this by taking insurance premiums from policy holders, pooling them in the general account of the insurance company, and then investing them in a conservative portfolio of stocks, bonds, cash equivalents and treasuries.