Sentences with phrase «bond issuer defaulting»

The second type, credit derivatives, is based on credit risk, or the probability of a bond issuer defaulting on an obligation.

The only exception to the guarantee is if the bond issuer defaults on the payment.

If you hold bonds to maturity, you should receive the principal and interest unless the bond issuer defaults.

Not exact matches

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.

Main risks: Rising interest rates could push bond prices down, and the bond's issuer could default.

There is still risk, of course: bond issuers can default, and companies that issue stock can go under.

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.

(The bonds that funds own each carry the risk of default if the issuer is unable to make further income or principal payments.)

According to Standard & Poor's, about 40 emerging - market bond issuers were on the brink of default as of year - end 2016.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of bonds, perceptions about the risk of default and expectations about changes in monetary policy or interest rates.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

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.

An issuer may default on payment of the principal or interest of a bond.

Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenBond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenbond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

These bonds are issued by less - creditworthy companies that carry a higher risk of default than better - rated issuers.

Overall, default rates among junk - bond issuers are projected to move about 3 percent next year, according to Moody's Investors Service, up from 2.7 percent in the first 10 months of this year.

The bond price at re-sale is determined largely by the risk of the issuer defaulting on payments, and the remaining term.

A CDS or Repo Agreement is usually concerning a bond issued by a private issuer, not a sovereign issuer for which default risk is minimal.

Last year, 187 U.S. municipal bond issuers officially defaulted, on a total of $ 6.4 billion — almost half of which was from 122 real estate projects in Florida.

«Statistically» this year to date, «only» 30 municipal issuers have officially defaulted on $ 1.5 billion in bonds, but thousands of government authorities are in de facto default on payments, and madly scrambling for re-negotiation, or forebearance, or blind hope.

While covered bonds are secured by a pool of assets, there is no guarantee that the cover pool will adequately or fully compensate investors in the event that an issuer defaults on its payment obligations.

Buying individual bonds exposes investors to credit risk, the possibility that a bond issuer will default on their debt (i.e., that they won't pay back the lender).

Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry.

4 Yield to Worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting.

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.

If you structure your ladder to have bonds expire at regular intervals, cash can be available on a consistent, scheduled basis (assuming no default by the issuer of the bond).

The lowest potential yield that can be received on a bond without the issuer actually defaulting.

Consider these risks before investing: Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry.

By buying a short term bond, you significantly reduce your exposure to interest rate moves, but your credit risk (the risk that the issuer may default on its payments) is still there.

In this case the Australian Treasury is extremely unlikely to default on an AUD bond but in general an issuer could of course fail to make the payment.

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

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.

Like other bonds, issuers are rated so the lower the risk of default by the government entity, the higher the quality of the bond.

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).

Asset prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including, in the case of bonds, perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer, industry or commodity.

Generally, the higher the risk of default by the bond issuer, the greater the interest or coupon.

If you are thinking about investing in high - yield bonds, you will also want to diversify your bond investments among several different issuers to minimize the possible impact of any single issuer's default.

Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including, in the case of bonds, perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry.

Always remember that a bond can become completely worthless if the issuer gets into financial difficulty and defaults.

You're taking the risk that the issuer of the bond might go into default.

The term refers to the face value of the bond, that is, the value at which the issuer will redeem the bond at maturity (assuming it does not default).

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.

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.