Observers wondered
if bond buyers had enough appetite to hoover up that demand.
Not exact matches
Post-financial market regulations (read: Dodd - Frank) have required banks and other «systemically important financial institutions» to hold more cash on their balance sheet, creating less
bond inventory on balance sheets — fewer potential
buyers, fewer potential sellers —
if portfolio managers are forced to meet client redemptions quickly and en masse.
He tells sales, that
if the client is patient, they would take his
bonds along when the block
buyer came in.
In our terms, there are value investors for Treasuries 10: There are lots of natural
buyers and sellers of interest rates, and
if Treasury
bonds crash dramatically someone will step in to buy them.
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.
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.
But don't overlook the point that,
if you sell, you aren't handing your
buyer a Treasury
bond.
If you sell your
bond for just $ 800, the
buyer gets that same $ 50 a year in interest.
But
bond buyers know that
if they keep the
bond until the maturity date, they can get their money back.
We define intrinsic value as the amount that would accrue to the owners of a security
if the underlying company were sold to a rational and well - informed
buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or
bond» Lou Simpson
If there are no
buyers in the market, the Federal Reserve steps in and buys the rest of the
bonds offered for sale.
Convertible
bonds (also called convertible securities) are corporate
bonds that can be converted into stocks
if the
buyer chooses.
These accounts also offer access to your savings without having to find a
buyer and arrange a price, as you would
if you were selling a stock or
bond.
Some funds can't own lower grade
bonds and are forced to sell, even
if there are no
buyers.
If you sell your
bond for just $ 800, the
buyer gets that same $ 50 a year in interest.
If bond yields drop from 6 % to 5 %,
bond buyers immediately grasp that their nominal return will be lower.
Then, in addition to the interest received from XYZ, the
buyer will also reap a profit when he ultimately collects $ 1,000 (
if all goes well) for a
bond he bought from you for only, say, $ 900.
Prohibited acts.A credit services organization, a salesperson, agent, or representative of a credit services organization, or an independent contractor who sells or attempts to sell the services of a credit services organization shall not: (1) Charge a
buyer or receive from a
buyer money or other valuable consideration before completing performance of all services, other than those described in subdivision (2) of this section, which the credit services organization has agreed to perform for the
buyer unless the credit services organization has obtained a surety
bond or established and maintained a surety account as provided in section 45 - 805; (2) Charge a
buyer or receive from a
buyer money or other valuable consideration for obtaining or attempting to obtain an extension of credit that the credit services organization has agreed to obtain for the
buyer before the extension of credit is obtained; (3) Charge a
buyer or receive from a
buyer money or other valuable consideration solely for referral of the
buyer to a retail seller who will or may extend credit to the
buyer if the credit that is or will be extended to the
buyer is substantially the same as that available to the general public; (4) Make or use a false or misleading representation in the offer or sale of the services of a credit services organization, including (a) guaranteeing to erase bad credit or words to that effect unless the representation clearly discloses that this can be done only
if the credit history is inaccurate or obsolete and (b) guaranteeing an extension of credit regardless of the person's previous credit problem or credit history unless the representation clearly discloses the eligibility requirements for obtaining an extension of credit; (5) Engage, directly or indirectly, in a fraudulent or deceptive act, practice, or course of business in connection with the offer or sale of the services of a credit services organization; (6) Make or advise a
buyer to make a statement with respect to a
buyer's credit worthiness, credit standing, or credit capacity that is false or misleading or that should be known by the exercise of reasonable care to be false or misleading to a consumer reporting agency or to a person who has extended credit to a
buyer or to whom a
buyer is applying for an extension of credit; or (7) Advertise or cause to be advertised, in any manner whatsoever, the services of a credit services organization without filing a registration statement with the Secretary of State under section 45 - 806 unless otherwise provided by the Credit Services Organization Act.
the interest received from a security's last interest payment date up to the current date or date of valuation; an investor who sells a security with accrued interest will not receive that interest until the next interest payment date after the sale; the
buyer receives all interest from the last payment date, including any interest that accrued while the
bond was owned by the prior investor; the
buyer then pays the seller all interest that has accrued from the last payment date up to but not including the settlement date for the trade; in a
bond ladder's summary calculations, the accrued interest field refers to the sum of all accrued interest from the securities in the ladder that will need to be paid
if the ladder is purchased on that day
If an investor sells his
bond today, the
buyer will want an interest rate higher than the original 6 % to compensate for the extra risk.
In other words,
if the
buyer's bid was accepted, he would pay less than the current
bond holder did when the
bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt
bonds.
If the federal government goes this route,
bond buyers could have additional investment opportunities beyond the debt issued by the affected municipalities.
Usually on a fixed - coupon
bond (e.g. Government
bond) the interest rate is fixed for a given period (say 10 years), and
if market rates rise the face value of the
bond falls, to compensate for the lower return a new
buyer would get, compared to the market interest rate.
(1) A credit services organization, its salespersons, agents, and representatives, and independent contractors who sell or attempt to sell the services of a credit services organization may not do any of the following: (a) conduct any business regulated by this chapter without first: (i) securing a certificate of registration from the division; and (ii) unless exempted under Section 13 -21-4, posting a
bond, letter of credit, or certificate of deposit with the division in the amount of $ 100,000; (b) make a false statement, or fail to state a material fact, in connection with an application for registration with the division; (c) charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for the
buyer; (d) dispute or challenge, or assist a person in disputing or challenging an entry in a credit report prepared by a consumer reporting agency without a factual basis for believing and obtaining a written statement for each entry from the person stating that that person believes that the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information; (e) charge or receive any money or other valuable consideration solely for referral of the
buyer to a retail seller who will or may extend credit to the
buyer,
if the credit that is or will be extended to the
buyer is upon substantially the same terms as those available to the general public; (f) make, or counsel or advise any
buyer to make, any statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be untrue or misleading, to a credit reporting agency or to any person who has extended credit to a
buyer or to whom a
buyer is applying for an extension of credit, with respect to a
buyer's creditworthiness, credit standing, or credit capacity; (g) make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice, or course of business that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization; and (h) transact any business as a credit services organization, as defined in Section 13 -21-2, without first having registered with the division by paying an annual fee set pursuant to Section 63J -1-504 and filing proof that it has obtained a
bond or letter of credit as required by Subsection (2).
If an institution sells a
bond with a $ 100 premium and a 10 - year maturity to a
buyer, the institution is agreeing to pay back the $ 100 to the
buyer at the end of the 10 - year period as well as regular interest payments over the course of the intervening period.
This is very rare, but when it happens, it leaves a lot of very unhappy investors; their coupon payments are taxed as ordinary income and,
if they choose to sell the
bond, the price they receive will be reduced because
buyers would require a higher yield on a taxable
bond.
For example, the table below shows three different
bonds, all maturing in two years and all of which give the
buyer a return of 4 %
if purchased at their net present value price:
If this individual sold the
bond at $ 1,100, then the yield for the
buyer would be $ 40 / $ 1,100 = 3.64 %
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.
But
if you wanted to sell your
bond on Friday, no one's going to buy unless unless the
buyer can earn 2.335 % on her investment — the rate at which 10 - year T -
bonds closed on Friday.
If the Fed concludes that pump - priming will push up prices, it could raise short - term rates to fight inflationary pressures, allaying
bond buyers» fears.
Having owned 10, 20, 30 % (even 80 % ugh) of a given
bond issue, I knew that I could only accumulate and decumulate in dribs and drabs, and contented myself with being a pseudo market maker, who could buy
if the price was attractive, hold under all conditions, and sell
if a loony
buyer or
buyers showed up.
By locking in a yield at the beginning, the ladder helps insulate the
bond buyer from price losses
if the investor holds to maturity.
Liquidity risk:
if the
bond issuer's credit rating falls or prevailing interest rates are much higher than the coupon rate, it may be hard for an investor who wants to sell before maturity to find a
buyer.
If the
bond does default, the insurer must pay the
buyer the face value of the
bond.
Lenders, rating agencies and
bond buyers worry that a sale or refinance may not cover the debt
if a property fails to perform.
But
if government
bonds rose to four per cent, prospective
buyers who take on more risk and workload than a
bond buyer would demand a higher ROI or cap rate.
The Estate Agent's Deed of Sale is often used, however, this can fail
if the prospective
buyer can not get the required deposit for the
bond together.
At this point I don't like using
buyer's agency contracts because frankly
if the only reason a client is continuing to work with me and show loyalty is because of a piece of paper that
bonds us I have failed miserably in my service.
A property seller who employs the services of an attorney using the tools made available through the Attorney Realtor Hub will also have the comfort of only meeting cash or
buyers who are screened and prequalified through the My
Bond Fitness process
if they can actually qualify for a home loan and as such also eliminate many offers from home
buyers who fail to qualify for a home loan.
If repeated storms and floods are likely to send property values — and tax revenue — sinking while spending on sea walls, storm drains or flood - resistant buildings goes up, investors say
bond buyers should be warned.
If you have been driving a
buyer around for days,
bonded with them, eaten lunch or dinner with them, again, difficult to ask an agent not to work in the
buyer's best interest when writing on a company listing.