Sentences with phrase «issuer default»

The phrase "issuer default" means that the company or entity that issued a financial product, like a bond or loan, has failed to fulfill its financial obligations and cannot make the required payments or repay the borrowed money. Full definition
The only exception to the guarantee is if the bond issuer defaults on the payment.
The previous post on credit card issuer default rates deliberately avoids the question of ethics in lending.
Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.
If you hold bonds to maturity, you should receive the principal and interest unless the bond issuer defaults.
Although government bonds might have very little credit risk, mainly from issuer default, they still carry interest rate risk, meaning bond prices will fall as interest rates rise.
A foremost global rating agency, Fitch Ratings affirmed a stable outlook on the Foreign Currency, Long - Term Issuer Default Ratings of...
the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer
The 2018 global corporate default tally rose to 23 after three issuers defaulted last week.
Non-investment grade bonds, also known as junk bonds or high - yield bonds, have very low credit ratings due to a high probability of the corporate issuer defaulting on its interest payments.
In return, the seller agrees that, in the event that the debt issuer defaults or experiences another credit event, the seller will pay the buyer the security's premium as well as all interest payments that would have been paid between that time and the security's maturity date.
However, losses are possible if interest rates change or bond issuers default on their obligations to bondholders.
Fitch Ratings international credit rating agency upgraded the long - term issuer default rating for Vnesheconombank from stable to positive.
Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.
Fitch Ratings has today affirmed Woodside Petroleum Ltd's long - term issuer default rating as stable, with its senior unsecured rating at BBB +.
the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer
The second type, credit derivatives, is based on credit risk, or the probability of a bond issuer defaulting on an obligation.
FSLT is rated Long - Term Issuer Default» B +» with Negative Outlook.
Oct 4 - Fitch Ratings has affirmed the Issuer Default Rating for Expedia, Inc..
The rating agency cut its long - term issuer default rating to AA - from AA, saying «difficult actions» will be necessary for the province to achieve its target of eliminating the $ 12.5 - billion deficit.
(The following statement was released by the rating agency) NEW YORK, November 09 (Fitch) Fitch Ratings has downgraded the ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term Issuer Default Rating (IDR) to «BB +» from «BBB -».
If an issuer defaults no future income payments will be made.
Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).
Guaranteed returns at predetermined intervals and an assured face value repayment on maturity, unless the issuer defaults.
KEY RATING DRIVERS SPG's «A» Issuer Default Rating (IDR) reflects the company's continued market - leading access to capital, high quality real estate portfolio, cycle - tested m
The bond price at re-sale is determined largely by the risk of the issuer defaulting on payments, and the remaining term.
A foremost global rating agency, Fitch Ratings affirmed a stable outlook on the Foreign Currency, Long Term Issuer Default Ratings...
6) National: Fitch Ratings has reaffirmed its issuer default rating for CoreCivic at BB +, citing its good credit metric but noting that this was offset by «flat occupancy rates and margins.
While covered bonds are secured by a pool of assets, there is no guarantee that the cover pool will adequately or fully compensate investors in the event that an issuer defaults on its payment obligations.
If an issuer defaults no future income payments will be made.
So unless the issuer defaults on the principal or interest payments, the investor will still get back the original $ 25,000 investment!
Default risk is the risk of an issuer defaulting on its contractual agreement, and failing to repay principal.
All bonds and fixed income products are subject to a number of risks, including the possibility of issuer default, credit risk, market risk, and prepayment and extension risk.
You can lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer defaults on their payments.
If the issuer defaults, your loss could amount to the entire $ 10,000.
What's reassuring is you know your risk exactly: will the issuer default?
Bonds can also be wiped out entirely if the issuer defaults, as has been the case in the past with sovereign debt.
The real reason would be the risk of the issuers default.
If the debt issuer does not default and if all goes well the CDS buyer will end up losing some money, but the buyer stands to lose a much greater proportion of their investment if the issuer defaults and if they have not bought a CDS.
For example, the buyer of a credit default swap will be entitled to the par value of the contract by the seller of the swap, should the issuer default on payments.
Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).
Commodities investing entail significant risk as commodity prices can be extremely volatile due to wide range of factors Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.
Some municipal bonds are insured by outside agencies, usually a monoline insurer, which promises to pay the interest and principal if the bond's issuer defaults.
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