Sentences with phrase «if bondholders»

2) Stabilize insolvent financial institutions through receivership if the bondholders of the institution are unwilling to swap debt for equity.
If bondholders» claims can not be met, then default and bankruptcy may occur.
In October, the European Union pledged to write off 100 billion euros ($ 127.8 billion) of Greece's debt if bondholders would agree to voluntarily accept 50 percent losses on their Greek holdings.

Not exact matches

«If the «bail - in» of junior bondholders is not announced simultaneously with a bailout of retail investors, the announcement likely would severely hurt the popularity of the parties belonging to the coalition government,» Fois from Barclays said.
If you were a holdout bondholder and you thought «well but Argentina can't just never pay us or anyone else,» you have to be re-evaluating that theory.
According to Griesa (uniquely), this means that if any creditor or vulture fund refuses to participate in a debt writedown, no such agreement can be reached and the sovereign government can not pay any bondholders anywhere in the world, regardless of what foreign jurisdiction the bonds were issued under.
Then, President Obama went to the Group of Twenty meeting, after Tim Geithner, the Treasury Secretary, had been on the phone with Europe, and said that if Greece didn't pay the French and German bondholders, the American banks had made huge bets and would go under — and so would big European banks who were counterparties.
If Greece fails to persuade enough bondholders to take voluntary losses, it may pass a law activating clauses in the bonds that would force creditors to take losses.
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.
And if these companies can't service that debt, the bondholders walk away with what's left, and the equity holders get nothing.
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.
Bondholders can still recoup their original costs if the value of the interest income the bond has generated is greater than the lost principal value.
If (some say when) the Greeks default, the Germans or new bondholders end up with the assets, much like in a home foreclosure.»
If the FDIC had authority over insolvent non-bank financials and bank holding companies, it could wipe out equity and an appropriate amount of bondholder capital, and sell the fully - functioning residual to an acquirer, as is typically done with failing banks, without any loss to depositors or customers.
Government - provided capital should be subordinate only to depositor claims, if equity and bondholder capital ultimately proves insufficient to meet those obligations.
If this authority had existed in 2008, Bear's bondholders would not now stand to get 100 % of their money back, with interest, as they presently do, and Lehman's disorganized liquidation would have been completely unnecessary.
Geithner and Obama warned that if Greek bondholders were not paid in full, some giant U.S. banks would lose heavily on the default insurance contracts and derivatives they had written, and their losses could spread «contagion» to Europe.
Also, US President Obama and Treasury Secretary Geithner also told Angela Merkel that US banks had made big bets — derivative gambles — that Greece would pay its bondholders, and threatened to hurt European banks if they did not pressure the IMF to bail out Greece.
If the Fed and the Treasury are smart, they will act quickly to figure out how to respond to multiple events like we've seen in recent days, to expedite turnover in ownership and quickly settle the residual claims of bondholders, without the kind of malfeasance reflected in the Bear Stearns rescue.
The Fed only stands to lose if the bank itself fails, and so spectacularly that the bank's liquidation value goes negative even after zeroing out bondholder claims and stockholder equity.
I could admittedly do better, and would certainly have captured more upside from temporary speculation, had I committed myself to the principle that central banks will act strictly to defend the bondholders of the banks they represent, even if it means trespassing into fiscal policy, subordinating public interest, empowering the worst stewards of capital, violating legal restrictions, and inviting long - term instability.
Investors holding floating - rate loans are considered preferred creditors relative to the issuer's other obligations: If the issuer defaults, loanholders will be paid before other investors, including bondholders.
Existing bondholders are to reap a windfall if this plan succeeds.
If there is no money to pay, foreign bondholders will suffer — as long as Greece puts its own economy first.
If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.
1MDB has a $ 3 billion bond outstanding that does not mature until 2023 but the fund has a strong incentive to pay this back sooner rather than later — even if it means paying bondholders a premium.
And so you have a system where not only are the banks allocating credit in the economy, but it's the corporate sector itself, the industrial sector, is treating companies, industrial companies, as if the purpose was to squeeze out a financial surplus to pay bondholders and stockholders.
Many individual bondholders believe the implications of interest rate fluctuations don't impact them because they'll receive their principal value on an individual bond if held to maturity.
If a company is liquidated, preferred shareholders rank ahead of common shareholders but behind bondholders.
However, Ms Lacaze told The Australian Financial Review if two of the largest bondholders, Mt Kellett and Fortress, which formed a strategic alliance in 2015, were to convert 100 per cent of the bonds and exercise all of their warrants they would emerge with more than 40 per cent of the company's equity but she added a further shareholder approval would have to be sought for a conversion of that extent.
Now, if the US prints dollars to pay its debt, that can cause inflation, but the cost of inflation is borne by everyone while the cost of default is borne by only the bondholder.
To the bondholders (the creditors), it doesn't matter if the country prints money, collects taxes, or does whatever else.
The key thing about service contract bonds is that the State's commitment to pay for them is not legally binding, and the MTA and transit riders are ultimately responsible for paying bondholders if the State reneges on its commitment.
The new plan also offers a major bow to bondholders and Wall Street credit rating agencies, who might be worried that state bonds — with payments guaranteed by the state's income tax revenues — could face future payment issues if Albany is to rely less on income tax collections.
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.
In the example set forth below, senior debt service (as well as reserve accounts for the benefit of senior bondholders) accumulates revenues ahead of TIFIA debt service and reserve accounts for TIFIA debt service, if applicable.
On the other hand, a secured bond is a bond in which specific assets are pledged to bondholders if the company can not repay the obligation.
The most you could make was $ 100 million, if General Electric defaulted on its debt any time in the next ten years and bondholders received nothing.
EBITDA is all very good if you are a bondholder, but stockholders need free cash flow — AK and Algoma had none of that as steel prices fell.
If things get bad, though, Bank of America could walk away from Countrywide, and give it to the bondholders.
If the coupon rate on a $ 1000 bond is 8 %, that means the bondholder will be paid an $ 80 in interest for that year, or in other words, the coupon is $ 80.
For instance, if a bond has a maturity date of January 1 2020, that means the par value will be paid to the bondholder at that date.
If the OID did not increase the holder's tax basis during the period the bond is outstanding, a sale of the bond for an amount in excess of $ 4,628 would produce taxable capital gain to the bondholder, even if the increase in value arose solely as a result of the accretion of OIIf the OID did not increase the holder's tax basis during the period the bond is outstanding, a sale of the bond for an amount in excess of $ 4,628 would produce taxable capital gain to the bondholder, even if the increase in value arose solely as a result of the accretion of OIif the increase in value arose solely as a result of the accretion of OID.
The bondholders always get paid first, and a company can cut its dividend at the whim of the board of directors if cash is a little tight.
If the second bondholder holds to maturity, he or she will thus recognize a gain of $ 200 ($ 5,000 proceeds on maturity minus $ 4,800 basis).
Bonds are «low risk» loans where bondholders receive income regardless of the economy or company performance; the main risk that bondholders retain is interest rate risk (that is, the risk that they could have asked for more interest on their loans if they'd loaned at a later date).
Because this calculation is only necessary to determine the bondholder's basis, it need not be done by the bondholder until sale or other disposition of the bond and, if the holder holds the bond until maturity, it need never be done.
If your bond issuer goes bankrupt, secured creditors like banks are paid first, followed by unsecured creditors like bondholders.
The bonds are mortgage - backed so if CSI reneges on its commitments, the property will be sold with bondholders getting a cut of the proceeds after all other lien - holders (like the bank and city) are paid off.
That said, if they do end up there, expect that the governments hand losses off to bondholders, pensioners and / or medical care recipients.
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