Sentences with phrase «issuer defaults»

While the largely self - executing process was designed to be as self - service as possible, a trustee service is also being provided by Australia - based Link Asset Services (previously known as Capita) in case the issuer defaults.
While the entire process was designed to be as self - service as possible, a trustee service is also being provided by Australia - based Link Asset Services (previously known as Capita) in case the issuer defaults on the loan.
If you hold bonds to maturity, you should receive the principal and interest unless the bond issuer defaults.
Buying individual bonds provides certainty, because investors know exactly how much they will earn if they hold a bond to maturity, unless the issuer defaults.
(Structured products are unsecured debt securities, and hence lose value if the issuer defaults.
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.
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.
If the issuer defaults, your loss could amount to the entire $ 10,000.
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.
The only exception to the guarantee is if the bond issuer defaults on the payment.
So unless the issuer defaults on the principal or interest payments, the investor will still get back the original $ 25,000 investment!
If an issuer defaults no future income payments will be made.
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.
Guaranteed returns at predetermined intervals and an assured face value repayment on maturity, unless the issuer defaults.
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.
Oct 4 - Fitch Ratings has affirmed the Issuer Default Rating for Expedia, Inc..
Fitch Ratings has today affirmed Woodside Petroleum Ltd's long - term issuer default rating as stable, with its senior unsecured rating at BBB +.
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.
(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 -».
The 2018 global corporate default tally rose to 23 after three issuers defaulted last week.
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).
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
Already Buhari has started giving excuses for the abysmal performance.He attributed the quagmire to drop in the price of oil globally and cleverly laid the blame on the doorsteps of all Nigerian accusing them of relying solely on oil.All renowned rating agencies including fitch continue to downgrade Nigeria ever since Buhari took over and it is projected that Nigeria will not be able to repay its debt obligations.Fitch for instance downgraded Nigeria's longterm foreign currency issuer default rating to B + from BB - and longterm local currency IDR to BB - from BB.The general position expressed by almost all the Briton wood institutions is that Nigeria's fiscal and external vulnerability has worsened under Buhari and it is projected that the government's general fiscal deficit could grow up to 4.2 % by the end of 2016 after averaging 1.5 % under the previous regime.A recent capital importation report by Nigeria Bureau of Statistics confirms that, last year, the country recorded total inflow of capital into the economy stood at $ 9.6 billion which was a 53 % drop from previous year and the lowest recorded total since 2011.
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...
The performance of these investments may be adversely affected by tax, legal, legislative, regulatory, credit, political or government changes, interest rate increases and the financial conditions of issuers, which may pose credit risks that result in issuer default.
Default risk is the risk of an issuer defaulting on its contractual agreement, and failing to repay principal.
According to data provided by CMA DataVision, the credit specialists, the 10 - year credit default swap spread — a form of insurance contract against issuer default — has risen steadily — from 1.6 basis points (0.016 %) in July 2007, to 16 basis points in March 2008, to 30 basis points in September, to over 40 basis points on October 27 — see the chart below for the spread history so far this year.
Bonds are subject to interest rate risk (as interest rates rise bond prices generally fall), the risk of issuer default, issuer credit risk, and inflation risk, although U.S. Treasuries are backed by the full faith and credit of the U.S. government.
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.
What's reassuring is you know your risk exactly: will the issuer default?
The real reason would be the risk of the issuers default.
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.
Bonds generally present less short - term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall), issuer default risk, issuer credit risk, liquidity risk and inflation risk.
These NRSROs assign ratings to securities by assessing the likelihood of issuer default.
The second type, credit derivatives, is based on credit risk, or the probability of a bond issuer defaulting on an obligation.
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.
The previous post on credit card issuer default rates deliberately avoids the question of ethics in lending.
April 26 - Fitch Ratings has upgraded the credit ratings of Federal Realty Investment Trust (NYSE: FRT) as follows: — Issuer Default Rating (IDR) to «A -» from «BBB +»; — Unsecured revolving credit facility to «A -» from «BBB +»; — Senior unsecured notes to «A -» from «BBB +»; — Redeemable preferred shares to «BBB» from «BBB -».

Not exact matches

When you own a bond mutual fund, you don't actually own a bond — which will continue to pay a coupon so long as the issuer isn't in default — you just own a share of the fund, which is comprised of lots of bonds and sometimes other things.
But be forewarned: Unless you've been in business at least two years, McKinley says, issuers will typically want to hang the account on your personal credit, which means you may be liable in the event the account defaults.
Main risks: Rising interest rates could push bond prices down, and the bond's issuer could default.
Lower - quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
There is still risk, of course: bond issuers can default, and companies that issue stock can go under.
Fixed - income securities also carry inflation risk and credit and default risks for both issuers and counterparties.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.
If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.
• Lower - quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
While I don't expect a significant deterioration in credit markets next year, conditions are turning less favorable: corporate leverage is higher, default rates are rising and with oil hovering near $ 40, energy issuers are at risk.
(The bonds that funds own each carry the risk of default if the issuer is unable to make further income or principal payments.)
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