Sentences with phrase «government bond payments»

However, one disadvantage of issuing government bonds is that as the government bond payments are made in the local currency of the country, there is a risk of inflation of the currency and in case of inflation, the value of the currency paid to you for the government bonds that you own may decrease.

Not exact matches

As the Christian Science Monitor noted, that's probably a more realistic concern for China, which holds $ 1.3 trillion in U.S. government bonds, than Washington missing interest or principal payments.
An individual in the second or third country can sell his government bonds, but an individual in the first or fourth country can borrow against his future transfer payments.
The bill would also allow state and local governments to issue Build America Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projBonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projbonds that finance government works projects.
Failing payment, the ECB threatened not to accept Greek government bonds as collateral.
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.
The idea that real interest rates — that is, adjusted for inflation — will be lower than they have been historically is reflected in the pronouncements of policymakers such as Federal Reserve chair Janet Yellen, the medium - term forecasts of official agencies such as the Congressional Budget Office and the International Monetary Fund and the pricing of government bonds whose payments are tied to inflation.
It sold stock in the company to the public, with payment to be made in government bonds.
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.
First, the Puerto Rican government will try to unilaterally decide which bond payments it needs to skip in order to keep the lights running.
Congress should provide a direct - payment bond option, in which state and local governments receive direct federal payments to subsidize a portion of the taxable interest paid to private bond holders.
The state Constitution mandates that the government make its bond payments and pension contributions.
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.
When we last tuned in to the seemingly endless conflict between New Paltz government and developers seeking to build student housing for the college, the town board had bonded with the village board in opposing any kind of payment in lieu of taxes (Pilot) agreement for the developer.
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.
When you buy a bond, you give a government or corporation a sum of money in exchange for the promise of interest payments for a specified period.
A group of three different credit agencies work together to calculate the score, which measures how likely the government is to make payments on the bonds that it issues once they mature.
Bond: A bond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bBond: A bond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bbond is a contract between an issuing entity (typically a government or a corporation) and a lender / investor where the lender gives the issuer a predetermined amount of money (called the principal) for a fixed term and in return receives interest payments (also called coupon payments) until the maturity of the bondbond.
Treasury Inflation - Protected Securities (TIPS) are a type of government bond that provides protection against inflation along with twice a year interest payments.
Flower bonds: U.S. government securities that were issued at a discount from par value, but are acceptable at par in payment of estate taxes.
Each year, you observe how much the Government increases the amount paid per bond and divide it by the Government's original (first year) payment per bond.
Lower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest payments.
So if you've got cash in the bank, stocks, bonds, retirement accounts, CDs or GICs, government benefits, pension payments, mutual funds, exchange - traded funds, or cash stuffed in your mattress then you've got financial assets.
Lease rental bond: A municipal revenue bond that is supported by lease payments on a building, usually a building leased to a government agency.
Entities like corporations, cities and governments issue bonds and promise to pay it back with interest payments, generating a regular stream of income.
This risk is minimal for mortgage - backed securities issued by government agencies or government - sponsored enterprises — also known as «agency» securities issued by Ginnie Mae, Fannie Mae or Freddie Mac — and most asset - backed securities, which tend to carry bond insurance that guarantees payments of interest and principal to investors.
Tax will be deducted at source while making payment of interest on the non-cumulative bonds from time to time and credited to Government Account.
While a weaker dollar may boost U.S. exports and the profits of U.S. companies with overseas operations, weaker foreign demand for U.S. Treasury bonds would push up long - term interest rates, raising mortgage payments for U.S. homeowners and borrowing costs for an indebted government.
To pay the financial obligations owed to an injured party, a defendant — or more usually, his or her casualty insurance carrier — will purchase one or more annuities from a life insurance company, or delegate its periodic payment obligations to a third party, which in turn would purchase a qualified funding asset — either an annuity or a government bond.
Build America Bonds (Direct Payment) are bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on such bBonds (Direct Payment) are bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on suchPayment) are bonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on such bbonds in which the U.S. Treasury Department pays state or local government issuers a payment equal to 35 percent of the coupon interest payments on suchpayment equal to 35 percent of the coupon interest payments on such bondsbonds.
The new Build America Bond Program allows state and local governments to issue taxable bonds in 2009 and 2010 for government capital projects and receive a direct federal subsidy payment from the US Treasury for a portion of their borrowing costs.
Bonds issued by a crown corporation but guaranteed by the applicable government as to interest and principal payments.
Any bond issued by a corporation or government that has a maturity greater than 12 months can be considered a balloon - type long - term liability since the amount that must be paid to retire the bond at maturity is substantially more than the interim interest payments.
1T - Bills are guaranteed as to the timely payment of principal and interest by the U.S. Government and generally have lower risk - and - return than bonds and equity.
Governments, municipalities, and corporations issue zero coupon bonds, which are designed and priced to attract investors who prefer a single payout on maturity rather than a series of payments over a number of months or years.
The Fed purchases government securities through private bond dealers and deposits payment into the bank accounts of the individuals or organizations that sold the bonds.
In other words, investors believe that there is no chance that the U.S government will default on interest and principal payments on the bonds it issues.
Automated Clearing House (ACH) BND Direct - Cash Management Bond Registrar Certificates of Deposit Checking Account Disputed Royalty Payments Escrow Agent Government Security Purchases Merchant Card Services Oil and Gas Cash Bond Paying Agent Positive Pay Remote Deposit Capture Safekeeping Savings Account Trustee Wire Transfers
If I buy a German government bond, do I have to send them a coupon payment?
Any excess of taxes over benefit payments is invested in special U.S. Treasury bonds, which earn the average rate of return on publicly traded government debt.
Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princiGovernment bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed princigovernment as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
If the revenue from the specific project is not sufficient to cover the payments owed to bondholders, then the government entity that issued the bonds is not required to step in and make payments.
Agency securities are guaranteed by the U.S. government as to the timely payment of principal and interest, however this guarantee does not apply to the yield, nor does it protect against loss of principal if the bonds are sold prior to the payment of all underlying mortgages.
Zero - coupon bonds represent the ownership of principal payments on U.S. government note or bonds.
Every week, every month, the Fed collects interest on all those bonds — from the taxpayers, in government bonds, but, indirectly, from all the homeowners making payments on their mortgages.
If interest rates continue to climb, there is less to gain by replacing older bonds, but local governments may issue taxable bonds if they see an opportunity to reduce interest payments.
However, longer - dated U.S. Treasuries (guaranteed by the federal government as to the timely payment of principal and interest) tend to be more rate - sensitive than other types of bonds.
Data Source: Thomson Reuters, 1/18; * T - Bills are guaranteed as to the timely payment of principal and interest by the U.S. Government and generally have lower risk - and - return than bonds and equity.
Zero coupon bonds still involve lending money to a government or company but instead of receiving regular interest payments you get the «interest» at the end of the term.
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