Sentences with phrase «bondholders interest»

For example, a company that issues a bond generally must periodically pay bondholders interest, but doesn't repay the principal until the bond is redeemed.

The bondholder loans the issuer money and the issuer promises to pay the bondholder interest at a specified rate on the loan for a specified period of time and then to repay the loan at expiration.

Not exact matches

Convertible bonds are securities that pay interest, but give the bondholders the right to convert them to equity shares; they're basically a way to bet on the growth potential of a company without taking the risk of buying common shares.

Some of that cushion is needed to pay interest to bondholders, however, because customers on installment plans don't pay anything extra beyond the price of a phone.

To address the many defaults in U.S. states and elsewhere around the world, Great Britain created the Corporation of Foreign Bondholders to represent the interests of these investors.

As Paulson, Geithner and the Federal Reserve chairman, Ben Bernanke, raced to bail out banks and companies like A.I.G., Bair resisted, fearing that they were being overly generous by putting the interests of bondholders over those of taxpayers.

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.

Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.

Corporate raiders pay their high - interest bondholders, while financial managers also are using this ebitda for stock buy - backs to increase share prices (and hence the value of their stock options).

For bondholders, the interest coverage ratio is supposed to act as a safety gauge.

These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders» principal.

Finally, Congress should be clear that government funds will be available only to protect the interests of depositors, not bondholders.

If this authority had existed in 2008, Bear's bondholders would not now stand to get 100 % of their money back, with interest, as they presently do, and Lehman's disorganized liquidation would have been completely unnecessary.

To what extent should a country impose austerity and even depression on itself — more than a great recession, an entire lost decade on itself — simply to pay interest to bondholders who've been financing a fiscal system that hasn't really taxed the rich in Greece?

The beneficiaries of falling interest rates have been mainly the bondholders, not new borrowers, because only a fraction of existing debt represents new debt at the recently falling rates — which now are rising once again.

«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.»

Because bondholders receive a fixed interest rate and get paid before stockholders, bonds are safer investments than stocks.

According to J.P. Morgan, in December and January, China announced tax benefits on interest income for railway bondholders, issued bonds for railway projects, and injected cash into the two largest train makers.

I could admittedly do better, and would certainly have captured more upside from temporary speculation, had I committed myself to the principle that central banks will act strictly to defend the bondholders of the banks they represent, even if it means trespassing into fiscal policy, subordinating public interest, empowering the worst stewards of capital, violating legal restrictions, and inviting long - term instability.

Bond credit ratings are the equivalent to an individual's credit score and are designed to guage the risk that a bondholder will not receive a portion or all of the interest and principal payments they are due on a bond.

Instead of freeing industrial capitalism from landlords, natural resource owners and monopolists, Western banks and bondholders joined forces with them, seeing them as major customers for as much interest - bearing credit as would absorb the economic rent that governments would refrain from taxing.

U.S. Treasury bond interest rates affect more than just bondholders!

In July, PREPA defaulted on a $ 170 million interest payment to bondholders.

A key part of the government, the island's sole utility company, PREPA, defaulted on interest payments to bondholders in July of this year, Vox reports, leading to widespread power outages.

The agreement implied austerity measures and included the extension of the repayment period to 15 years, the lowering of the interest rate to 3.5 % and a 53.5 % haircut accepted by the private bondholders.

So while rising interest rates are a risk for bondholders, they can also increase risks for stock investors.

Many individual bondholders believe the implications of interest rate fluctuations don't impact them because they'll receive their principal value on an individual bond if held to maturity.

The owner of the parking garages for the new Yankee Stadium is expected to default on a $ 6.8 million interest payment come April 1, which could result in a seizure by bondholders, Crain's reported.

«And as long as we have useful tools who purport to be Republicans, like Dean Skelos, Bob Turner, and a swath of other who are not willing to stand up for principles, but who would rather knuckle under to the most extreme demands of far - left Democrats, Public Service Unions and well - funded special interests in exchange for job security, and who could not lead a one - car funeral on an abandoned stretch of the Thruway, idiots like me — Andrew Cuomo — will continue to roll over the legislature, the taxpayers, the bondholders, and the rest of New York's victims with nary so much as an objection.»

As Puerto Rico has been forced to borrow, bondholders have made millions off of the high interest loans.

Investors are willing to accept lower returns on bonds in exchange for safety, but near - zero interest rate levels have traditional bondholders seeking yield elsewhere.

Even the bondholders of Bear Stearns can expect to get 100 % of their principal back, with interest.

This type of interest rate is referred to as the coupon rate for fixed - income investments, as it is the interest rate guaranteed by the issuer that was traditionally stamped on the coupons that were redeemed by the bondholders.

Even though the bondholder does not receive interest income, s / he is still required to report the imputed interest on the bond to the Internal Revenue Service (IRS) each year.

Fundamentally stocks allow investors to own a part of the company while bonds are a debt which pays interest payments to bondholders.

If the coupon rate on a $ 1000 bond is 8 %, that means the bondholder will be paid an $ 80 in interest for that year, or in other words, the coupon is $ 80.

Most bonds have an interest rate, also called the coupon or nominal rate, applied to the par value that the bond issuer will pay to the bondholder on a semiannual basis.

The bondholder must clip the coupons as they come due and present them for payment of interest.

Bonds are «low risk» loans where bondholders receive income regardless of the economy or company performance; the main risk that bondholders retain is interest rate risk (that is, the risk that they could have asked for more interest on their loans if they'd loaned at a later date).

From the bondholder's perspective, OID is simply additional interest that the bondholder will receive on the bond, except that it is paid at maturity instead of annually throughout the life of the bond.

The annual amount that the bondholder is paid in interest is called the coupon.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event; generally expressed as an annual percentage of the bond's face value

Bondholders have first claim to the underlying property in case the company does not make principal and interest payments as scheduled.

Since a preferred holder lacks the enforceable claim to interest and principal at maturity that is enjoyed by a bondholder, and the right to participate in residual profits enjoyed by the common stock holder (except for convertible holders), sound analysis is essential.

Bondholders are paid a coupon or interest each year until maturity, at which time your initial investment also is paid back in full.

Coupon rate: Some bonds have an interest rate, also known as the coupon rate, which is paid to bondholders semi-annually.

The higher interest rate in the economy decreases the value of the bond since the bond is paying a lower interest or coupon rate to its bondholders.

Many investors know that a bondholder receives periodic interest payments from the bond issuer and that principal is usually not due until the bond matures.

Revenue bonds are relatively riskier, since unlike GO bonds, they depend on the success of the specific project they are issued to fund, such as toll bridges or airport facilities, to pay interest to bondholders.

Bondholder claims rank higher than preferred stockholders in both their regular interest payments and in assets in the event of liquidation, but preferred stockholders rank above common stockholders.