Sentences with phrase «for bond defaults»

Not exact matches

This «recent stream of defaults» pushed the default rate of junk - rated bonds in the US to 3.9 % for the trailing 12 - month period ended in March, up from 3.4 % in December.
This caused the default rate for broadcast & media junk bonds to spike to 20 %, from 3.7 %, and it caused the default rate for leveraged loans in the sector to spike to 16 %, according to Fitch Ratings, which added soothingly:
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.
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 bFor 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 bfor stocks a dividend is essential, and not one at risk of a cut, or one that fluctuates through good times and bad.
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.
For savers, particularly retiring baby boomers, ultra-low yields are little short of disastrous, especially given that a 100 % allocation to bonds or annuities is the default option for retireFor savers, particularly retiring baby boomers, ultra-low yields are little short of disastrous, especially given that a 100 % allocation to bonds or annuities is the default option for retirefor retirees.
But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.
The option to hold a bond to maturity and «get your money back» (let's assume no default risk, you know, like we used to assume for US government bonds) is, apparently, greatly valued by many but is in reality valueless.
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.
Puerto Rico Default: What It Means for the Bond Market.
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.
The country, which hasn't sold bonds abroad since the default, has settled arbitration cases at the World Bank, paid Spanish oil company Repsol SA for the expropriation of YPF SA and negotiated with the Paris Club of creditor nations.
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.
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.
Either you raise adequate tax revenue, or you denominate the debt in long - term bonds and devalue them through inflation, or you default, or you violate the social contract made with those who don't hold paper claims (e.g. Social Security beneficiaries) in preference for those who do.
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.
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.
The big topic here is that if Treasuries are doomed to fall, we can expect weaker bonds to be put under increasing stress, leading to events that coukd serve as a catalyst for defaults and repricing in the broader asset class.
The proximate cause of death for virtually every defaulting junk bond is a liquidity crisis occasioned by either an inability to generate enough cash to service debt, or an inability to refinance maturing debt.
Junk bonds, for instance, are producing a less than pulse - quickening yield of 6 % which, adjusted for defaults (likely to explode during the next recession), isn't worth the risk — save in a few special situations.
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.
Though the underlying reason for that Treasury price strength was concern about economic weakness and credit defaults, falling bond yields do allow us to take a more constructive stance once market internals show evidence of improvement.
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).
12-10-2010 Resignation of Chairman 11-10-2010 Caledonia Mining Announces Third Quarter 2010 Results 10-21-2010 Caledonia Mining Announces the Commissioning of the No. 4 Shaft Project 08-26-2010 Caledonia Mining Announces the Completion of the Underground Installations on the No. 4 Shaft Project 08-18-2010 Caledonia Option Exercise Prices Reduction Becomes Effective 08-12-2010 Caledonia Mining 2010 Second Quarter and Half Year Results and Management Conference Call 06-14-2010 Caledonia Commissions the First Standby Generator at Blanket Gold Mine in Zimbabwe 05-14-2010 Caledonia Mining First Quarter 2010 Results 05-06-2010 Caledonia Installing a Standby Generator at Blanket Gold Mine in Zimbabwe 03-31-2010 Caledonia Mining 2009 Fourth Quarter and Annual Results and Management Conference Call 02-12-2010 Government of Zimbabwe sets out Regulations for Indigenisation 01-29-2010 Reserve Bank of Zimbabwe Defaults on Bond Repayment to Caledonia Mining and update on timeline for completion of No. 4 Shaft Expansion
The default assumptions for comparing the harvesting strategies are 60:40 equity bonds, 30 year retirement and portfolios of bonds in intermediate (not short) term treasuries and stock in 70 % total market and 10 % each in small company, small value and large value.
Creditex offers a leading electronic venue for trading credit default swaps (CDS) and corporate bonds.
As individuals normally hold far fewer bonds in their portfolio than bond mutual funds, the chances that a default will result in a large loss for the investor are generally higher for those investing in individual bonds.
Costs are dropping for both stock and bond funds, as well as for the target - date retirement funds that have become the default for many 401 (k) plans.
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 securitiFor 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 securitifor 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 securitifor the bond payments to the holders of Ginnie Mae securities.
If the company can't make those payments, it won't go into default like it would for a missed bond payment.
The basic idea is this: issue a corporate bond and then package it with a credit default swap [CDS] for the same corporate bond, with the swap cleared through a clearinghouse, which should have a AAA claims - paying ability.
In the municipal bond investing world, you do not get paid well for taking default risk.
He joined Leith Wheeler from TD Bank in January 2009, where he'd spent the previous 10 years trading a proprietary bank portfolio of credit default swaps, investment grade and high yield bonds for TD in New York and London.
Yet, as the Financial Times reported today, the demand for MUNI BONDS isn't there post Meredith Whitney as the yields are insufficient to overcome the fear of default.
In their February 2015 paper entitled «Credit Risk Premium: Its Existence and Implications for Asset Allocation», Attakrit Asvanunt and Scott Richardson measure and explore the predictability and diversification power of the credit (or default) risk premium associated with corporate bonds.
Should Greek voters reject the austerity plan, it could lead to a messy default on the country's debt that would likely cause massive losses for banks that hold Greek bonds - and possibly spark a wider financial crisis that could send Europe into recession.
To estimate portfolio alphas, he adjusts for six factors (equity market, equity size, equity value, equity momentum, bond term and default risk).
The insurance companies have promised to make timely interest and principal payments on any bonds covered by insurance if Puerto Rico defaults, said Rob Williams, director of income planning at the Schwab Center for Financial Research.
If the Treasury isn't able to make coupon payments, or pay for maturing bond / notes / bills they are in default.
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.
After the government shutdown and the startle of debt default, is it possible for the US government to issue bonds, and borrow money from other countries?
«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.
«There is no possibility no matter what happens that state taxpayers would be responsible... the investors who buy the bonds would pay for» any default.
But because they're a small biotech company, with high risk of default (i.e., a high risk of not paying off their debts), they would have to pay a very high interest rate in order to make the bond attractive enough for investors to purchase it.
For example, if the company has a really good patent, they could use the patent to guarantee the bond — promising the patent to the bondholders should the company default in its payments.
While it can take the form of an Infinity Stone, the Aether's default form is a liquid, which searches for and bonds with a host body.
If the film were described as a tutorial on MBS (Mortgage - backed Securities), CDO (Collateralized Debt Obligations), Credit Default Swaps, Tranches, Bond Ratings, and Sub-Prime ARMs, most people's eyes would glaze over and they would keep skimming for showtimes of other new movie releases.
By the same token, you can not default on the bond, as that would not be fair to bondholders, many of whom buy school bonds as a hedge against inflation and for their retirement.
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