Sentences with phrase «issue bond ratings»

In order to simplify comparison of different bonds, bond - rating agencies make it their specialties to issue bond ratings for different bonds.
Standard & Poor's issued the bond rating as the County prepares to refinance various bonds originally issued in 2004 and 2006 for lower interest rates.

Not exact matches

He shares the consensus view that the 30 - year bull market in bonds is now spent and recommends buying floating - rate notes issued by corporations that reset their coupon according to market rates every three or six months.
Earlier this year, countries on Europe's periphery (notably Italy and Spain) faced rising interest rates on newly issued government bonds, which threatened to push them into insolvency.
Japan has already lost its AAA status, and Fitch Ratings recently warned it might downgrade the country's sovereign debt if it issued more than the planned ¥ 44 trillion in bonds next year.
Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.
For ratings issued on a program, series or category / class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category / class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.
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.
«During the Harrison years, they had labour issues now and then,» says Kam Hon, managing director at bond rating agency DBRS, «but the disrupt ions were never extensive, so it never really hurt CN's performance.»
And corporations have spent the last decade issuing longer - term bonds to take advantage of low interest rates.
While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.
A downgrade by a credit rating agency usually means investors will demand a higher interest rate when a company goes to raise cash by issuing bonds or other debt.
Investors are set to snap up the bonds with an interest rate of less than 3.4 %, the Financial Times reported on Thursday, or about half the rate Sprint would have had to pay if it issued the bonds without any backing.
The high - grade bond market is springing back to life as corporations race to issue new debt and get out in front of a possible Fed interest rate hike.
a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc..)
In these cases, the difference between the bond's issue price (the discounted rate) and its face value would be considered tax - exempt income rather than capital gains.
The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.
These ETFs typically hold bonds issued by companies with lower credit ratings.
That is, it can go out, issue bonds at rock - bottom rates, then lend money to its own subsidiaries at rates the subsidiaries couldn't get if they were stand - alone enterprises.
Future generations should help pay for them and that's why governments today should be issuing 10, 30, or even 50 year bonds at currently ridiculously low interest rates to finance needed infrastructure.
The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.
We assumed that in each period a 30 - year bond is issued at prevailing interest rates (long - term government bond plus 1 %) and that amount is invested for the next 30 years in a portfolio of large - cap stocks while paying off the bond as an amortized loan (as if it were a mortgage).
Equity markets fell as investors shifted to the relative safety of bonds issued by the major countries — even though S&P had announced a downgrade of the US sovereign credit rating.
The Barclays U.S. Intermediate Government Bond Index is a market value — weighted index of U.S. government fixed - rate debt issues with maturities between one and 10 years.
And newly issued bonds tend to offer higher interest rates to make them more attractive to buyers.)
This is, however, still below the comparable figures in the United States, where 70 per cent of corporate bonds on issue are rated below A +.
Another way to facilitate green investments is for rich governments to buy down interest rates, which makes it more attractive to issue green bonds.
Although bonds rated at AAA still dominate, the proportion of new issues of bonds rated A + or below has increased from 15 per cent in 1996 to 30 per cent in 1999 (Graph 8).
Entities in smaller markets typically issue foreign currency debt in offshore bond markets because they can issue larger, lower - rated and / or longer - maturity bonds than they can (at least at comparable prices) in their domestic market.
High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.
Investment - grade bonds represented by the Bloomberg Barclays investment - grade Index, consisting of publicly issued, fixed rate, non-convertible investment grade debt securities.
How they vote on these issues at the remaining five policy meetings this year will shape what happens in the stock and bond markets, mortgage rates and savings rates.
While the returns of these bonds are affected by interest rates, they are also responsive to the overall economic cycle as well as the growth prospects of the issuing firm.
Just as individuals have their own credit report and rating issued by credit bureaus, bond issuers generally are evaluated by their own set of ratings agencies to assess their creditworthiness.
It issued a further 1.949 billion euros in bonds maturing in 2018 as the cut - off rate declined to 4.033 percent from 4.769 percent in a tender held in November.
Most corporate bonds were issued when interest rates were much higher, so the companies have to pay them.
Capital appreciation potential Companies issuing high yield bonds have the potential to turn around their financial standing, creating the opportunity for investors to realize capital gains as bond values increase, due to improving business conditions or improved credit ratings.
The issues are rated below investment grade by bond rating agencies.
a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs
Taking the position that the Stock Market is vunerable to rising bond interest rates Goldman issues a warning below.
Existing bonds or bond fund values, however, will drop as interest rates rise because investors can get higher rates on newly issued bonds.
In addition to near zero interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in markets with no place to go, akin to moribund monetary edema.
For instance — why would Apple (or these other multinationals) repatriate any cash rather than issue Aussie or Euro bonds which have lower long term rates.
This new, higher - risk means that new investors will require a higher rate and will not pay as much for previously issued bonds.
As Rosenbluth noted, HYDB allocates more of its roster to B - rated bonds and less to CCC - rated issues than do the two largest, traditional junk bond ETFs.
Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.
Those bond issues that get paid first will have a higher credit rating.
McDonald's issues $ 50 million in bonds with a maturity of 30 years The bonds have a face value (cost) of $ 1,000 and an interest rate of 3.5 % McDonald's pays investors 1.75 % in interest, twice a year for 30 years At the end of 30 years, McDonald's pays the $ 50 million back to investors at $ 1,000 for each bond they hold
Particularly good to see someone explain that the impact on bond funds is not the simplistic «1 % rise in bank rates means loss of duration %» but depends on the interest demanded at that point in the curve and normal supply / demand issues which are massively distorted for linkers.
Additional responsibilities involve setting interest rates, regulating financial markets, issuing the Renminbi currency for circulation, regulating interbank lending and the interbank bond market, managing foreign exchange and recording foreign currency transactions.
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