Sentences with phrase «issuer of the bond»

Manage volatility Because issuers of bonds generally make interest payments and repay principal, investment - grade bonds can be less volatile than stocks.

But a bigger question looms: Will the much - publicized settlement change the rules of engagement between raters and corporate issuers of bonds, as well as the investors who buy them?

You have found a likely looking issuer of these bonds, done your (hopefully extensive) due diligence, decided that the issuer is highly likely to be able to pay all scheduled interest and principal payments and are determined to buy some bonds.

Asset classes are how investments are categorized between the different sectors and sizes of stocks, different issuers of bonds, real estate, tangibles, and the various flavors of international investments.

Bond investments are also subject to credit risk, which is the risk that the issuers of the bond may default on payment of interest or principal.

Dependable income is subject to the credit risk of the issuer of the bond.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

So when you buy a bond or a fund that holds bonds, you are lending money to the issuer of the bond.

The primary concern of most bondholders is a potential default, where the issuer of the bond can no longer pay some or all of the money which is owed to the bondholder.

In simple terms, a bond holder is a lender who has loaned funds to the issuer of the bond.

What the contract essentially states is this: «I, the issuer of the bond, agree to accept $ X from you, the purchaser, at this present point in time.

They represent a loan from the buyer (you) to the issuer of the bond.

Dependable income is subject to the credit risk of the issuer of the bond.

If you structure your ladder to have bonds expire at regular intervals, cash can be available on a consistent, scheduled basis (assuming no default by the issuer of the bond).

Counterparty risk: If the issuer of bonds is partially, or in total, unable or fails to honour its obligations, the investment may suffer a corresponding loss.

The issuer of the bonds may not be able to meet interest or principal payments when the bonds come due.

Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.

The borrower (the issuer of the bond) makes a legal promise to repay the amount borrowed back (known as the principal or the bond's par or face value) to the bondholder on a specific future date (known as the redemption or maturity date) plus interest (known as the coupon rate or coupon) at a periodic rate, usually twice a year.

Thus a bond is a form of loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest.

You're taking the risk that the issuer of the bond might go into default.

They also can offer greater security than most common stocks since an issuer of a bond will do everything possible to meet its bond obligations.

The subscriber has to furnish Permanent Account Number (PAN) to the issuer of the Bonds.

Bond investors face a number of risks, such as inflation eroding the spending power of their interest payments and the possibility that the issuer of their bonds might default.

Read the prospectus for your fund and it will have the average duration as well as information about the issuers of the bonds it does invest in (govt, agency, mortgage backed, foreign, high quality corporate, etc) and whether there are constraints on the target average maturity.

Callable bonds are those bonds that can be called back by the issuer of the bond before the end of the maturity date.

Call Risk refers to when the issuer of a bond calls out and retires the bond, thus buying back all the bonds from people who bought it before the maturity date has reached.

The issuer of the bond must remain solvent in order to pay investors.

Credit risk, meanwhile, is the risk that the issuer of a bond will not make scheduled interest or principal payments.

Credit risk is the risk that the issuer of a bond won't meet their payments.

Most municipal bonds are free from federal taxes, and if the issuer of the bond is located in the same state where you reside, they can be free of state and local taxes as well.

Bond investments also are subject to credit risk, which is the risk that the issuer of the bond may default on payment of interest or principal.

What are the chances that the issuer of your bond will suspend interest payments or fail to pay back principal at maturity?

If the issuer of a bond does not default on its bond obligations, but makes other financial mistakes that lower the issuer's credit rating, the value of the bonds likely drops.

A callable municipal, corporate, federal agency or government security gives the issuer of the bond the right to redeem it at predetermined prices at specified times prior to maturity.

A loan from the bondholder to the issuer of the bond.

For an investing plan, it is the date on which the issuer of the bond must repay the bondholder the borrowed amount.