Sentences with phrase «bonds default on»

It will be interesting to see how existing muni bonds default on their agreed upon interest rates.

Although funds can decrease the impact of any given bond default on your portfolio, they can also increase the potential for price declines, particularly when interest rates start to rise as they eventually will.

Not exact matches

Originally from New York, Sonnenshein traded everything from credit - default swaps to bonds to equities during his time on Wall Street.

So for example if you bought a bond with 25 percent of each of the major economies, and Italy defaulted, you would still be paid on the remaining 75 percent, presumably at least,» he added.

Although no state has defaulted on general obligation bonds in over 80 years, the 19 th century witnessed numerous instances in which states - and the Florida territory - defaulted on their debts or even repudiated them outright.

While Venezuela has kept current on its bond payments, it has paid some coupons late, leading ratings agencies to declare a selective default and keeping creditors guessing.

For bonds this means issues that are not at risk of defaulting on a payment; for stocks a dividend is essential, and not one at risk of a cut, or one that fluctuates through good times and bad.

On US corporate bonds, Gundlach said they are «highly overvalued,» and recession and default risks make them an unattractive asset class.

China may witness its first local government bond defaults, although the timing was uncertain, Fitch Ratings said in a press release issued on Sunday, amid persistent concerns over high debt levels in the world second largest economy.

Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the municipal bond market because its effects were already «priced in» ahead of time.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

But then came Greece and its near - default on its sovereign bonds.

Debt covenants may soon become just another issue in the already long list if Valeant defaults on its bond indentures.

ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.

Geithner and Obama lobbied the IMF and ECB shamelessly to bail out Greece, simply so that it could pay bondholders, because U.S. banks had issued credit default insurance (CDS) against Greek bonds and were on the hook for a big loss if a default occurred.

On Argentina: «You have defaulted bonds trading above par, which is kind of interesting.»

David Kotok, chairman at Cumberland Advisors, discusses Puerto Rico defaulting on two bond payments and what it means for the bond market and the country.

Still, defaults on bonds or other forms of non-bank debt typically don't end up in bankruptcy.

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

Michael Spencer, an attorney for a group of smaller investors with more than $ 832 million of claims on defaulted bonds, said his clients haven't been able to negotiate directly with Argentina yet.

The default rate on double and triple A muni bonds has been 0.1 %.

Yet we also see very strong inflows into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradeDefault risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradedefault on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

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

Hovnanian skipped an interest payment due Tuesday on bonds it repurchased and parked with an affiliate, opening the door for GSO to collect payouts on credit - default swaps that insure against nonpayment.

As discussed on its March 15, 2016 preliminary earnings call, Valeant could receive a notice of default under its bond indentures as a result of the delay in filing its Form 10 - K for the year ended December 31, 2015.

While other cities chose to default on Depression - era bonds, Asheville selected to pay back the city's debt.

Pimco, the world's largest bond investor, still expects Greece to default on its debt.

Eliminating Puerto Rico's debts could raise interest rates on bonds to insulate against potential defaults, and subsequent debt elimination, on municipal bonds.

If there's not a single buyer that will take on both the assets and liabilities without the government assuming private default risk, Bear's assets should be put out for bid, Bear's bonds should go into default, and by the unfortunate reality of how equities work, Bear's shareholders shouldn't get $ 2 - they should get nothing.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

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Spreads between corporate bond yields and swap rates and the premia on credit default swaps have fallen slightly over the period, and are very low by historical standards (Graph 44).

Bonds that have a high credit worthiness and a relatively low chance of defaulting on part or all of their debt.

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).

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

The surreal scene, playing out in a squat concrete building at the park on the outskirts of Buenos Aires, is the latest twist in the long - running battle between Fernandez's administration and investors that refused to settle after the country's 2001 bond default.

Although he says he is not sure whether the market will suffer $ 10 billion or $ 30 billion in defaults, he is certain that there will be a panic at the margin, and Muni bonds from the highest - rated on down will fall, in part because other investors tend not to step to invest.

The Venezuelan government and its state - run oil company, PDVSA, both defaulted on certain bonds in November, according to ratings agencies.

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).

The basic point here is that by focusing on declining credit quality you put yourself in a position to sell a bond long before any potential default.

LB: With the default rate on municipal bonds being so low, is the benefit of diversification worth 100 BPS (1.0 %) in fees?

The idea of debt amnesties was to prevent debt from tearing society apart — to prevent the kind of crisis that the United States has been in since 2008, when President Obama didn't cancel the junk - bond debts, or the debts that tore the Greek economy apart — when the IMF and Europe imposed them on Greece instead of letting it default on debts owed to French and German bondholders.

The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state - run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.

For example, if a borrower defaults on their mortgage, Fannie and Freddie are responsible for the losses on the loans they guarantee to investors, while Ginnie Mae is financially responsible for the bond payments to the holders of Ginnie Mae securities.

«The cherry on top is that China itself is now trapped: it simply can't afford to let anyone default, as one bankruptcy would cascade across the entire bond market and wipe out countless corporations leaving millions of angry Chinese workers unemployed, and is therefore forced to keep bailing out insolvent companies over and over.

They start defaulting on their junk bond debt.

Russian bond yields and the cost of insuring the country against default rose on Wednesday, as investors fretted over intensifying sanctions, the prospect of a recession and falling oil prices.

The alternative is to default on their bank loans or high - yield bonds.

They evaluate factor portfolio performance based on excess return of constituent corporate bonds versus duration - matched U.S. Treasuries (thereby focusing on the default premium component of corporate bond returns).