Sentences with phrase «government bond defaults»

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.

Not exact matches

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.
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.
Without debt restructuring, Puerto Rico will be forced to default as it faces nearly $ 2.5 billion in bond payments from May through July, government officials have said.
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.
U.S. government bonds offer the most protection against default.
They extend tests of DR - CAPM to six portfolios of U.S. stocks sorted by size and book - to - market ratio, five portfolios of commodities sorted by futures premium and six portfolios of government bonds sorted by probability of default, and to multi-asset class combinations.
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.
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 Venezuelan government and its state - run oil company, PDVSA, both defaulted on certain bonds in November, according to ratings agencies.
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.
Moreover, 7.2 per cent growth, which is the other way to look at not taking early benefits, plus indexation, is hard to achieve on a long term basis in income stocks or with federal government bonds with no risk of default.
(i.e. there governmental bond holdings, to make it possible to compare what they would lose by the government defaulting as compared to what they would gain by not being taxed to repay the debt over X years?
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?
Since the crash, a down - spiral is underway in the $ 2.8 trillion municipal - funding system, in which local governments don't have the revenue to meet bond payments, they can't get new financing, municipal bond rates are rising, and, to worsen it all, crazy credit default swap deals have been foisted on localities.
«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.
Underperforming is the defaulted sector down nearly 3.8 % but what is extremely telling is the performance of the U.S. Government Bond backed Prerefunded and Escrowed to Maturity sector.
Although government bonds are supposed to be guaranteed because they can use tax revenue to pay out the money, there have been instances of countries like Russia defaulting on its domestic currency debt.
Instead, you start with the local currency government bond rate and subtract out the portion of that rate that you believe is due to perceived default risk:
Second, both the rating - based and sovereign CDS default spreads are US dollar based and netting it out against a local currency government bond rate can be viewed as inconsistent.
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.
The third approach is to ignore government bond rates in the local currency entirely, either because you believe that they are not liquid enough to yield reliable numbers or because they contain default risk.
Namely, bond coupon payments are determined by market interest rates, the type of issuing entity (government bonds pay lower coupons than corporate bonds because of lower default risk), the creditworthiness of the issuing entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.
Finally, the risk - free rate of return is usually calculated using U.S. government bonds, since they have a negligible chance of default.
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.
So, unless something truly catastrophic happens (like the US government defaulting on its bonds) or people in the company break the regulations (which would invovle all kinds of serious crimes and require complicity or complete failure of the auditors), your premiums and the contractual obligation to you would still be there, and would be absorbed by a different insurance company that takes over the defunct company's business.
Bonds issued by the US government pay a relatively low rate of interest but have the lowest possible risk of default.
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.
One caveat: Because bond index funds own so much U.S. government debt, where there is little risk of default, these funds should hold up well in financial meltdowns.
For Europe, of course, the problem is not only recession risk but the high level of debt to GDP, and rising funding costs and default risk reflected in European government bonds (outside of Germany, which is seen as the safe haven).
Pros of investing in zero - coupon bonds: Certainty of future returns; low default risk in government STRIPS Cons of investing in zero - coupon bonds: Phantom taxation occurs if used in a regular investment account; no interest until 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.
Since the government is unlikely to default on a loan, gilts are considered to be lower risk than corporate bonds.
The government, as of 2011, has never defaulted on bonds.
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.
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.
Besides the non-parallel rating systems between local and the international standards, the implicit government guarantees prevented bond defaults, which had made it difficult to analyze the true underlying credit risk.
In other words, the government won't let the company default and so the bond continues to pay off.
The facts are the situation isn't looking good: the pending PREPA July 1st default looms on the market, the possible restructuring of the Government Development Bank debt and the possible postponement of G.O. set — asides have sent alarms to G.O. bond holders.
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 changes in monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry.
Generally, the market interest rate for any particular term of bond is represented by the yields on government bonds, as these are viewed as highly liquid and of very low default risk.
But, short of the government defaulting, there's far less risk in bonds than there are in stocks.
But it is to be noted that there have been cases where government bonds have defaulted while paying interest and principal amount.
A Greek Government 10 - year bond yields about 29 % (extremely high yield and perceived likelihood of default)
Bonds issued by government or government agencies or government - sponsored enterprises, in the majority, are less likely to suffer from default due to their ability to raise taxes.
The degree to which an agency bond issuer is considered independent from the federal government impacts the level of its default risk.
Why would I pay $ 1,000 for a Corp A bond paying 5 % interest — and take on the risk that Corp A may default — when I can make almost as much interest on a «risk - free» (we hope) U.S. Government bond?
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