Sentences with phrase «issuers default on»

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).

The bond price at re-sale is determined largely by the risk of the issuer defaulting on payments, and the remaining term.

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.

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.

The only exception to the guarantee is if the bond issuer defaults on the payment.

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 second type, credit derivatives, is based on credit risk, or the probability of a bond issuer defaulting on an obligation.

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.

Not exact matches

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.

According to Standard & Poor's, about 40 emerging - market bond issuers were on the brink of default as of year - end 2016.

It's important to pay attention to changes in the credit quality of the issuer, as less creditworthy issuers may be more likely to default on interest payments or principal repayment.

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

An issuer may default on payment of the principal or interest of a bond.

Guaranteed returns at predetermined intervals and an assured face value repayment on maturity, unless the issuer defaults.

Credit risk is the risk that an issuer will default on payments of interest and principal.

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.

A foremost global rating agency, Fitch Ratings affirmed a stable outlook on the Foreign Currency, Long Term Issuer Default Ratings...

Last year, 187 U.S. municipal bond issuers officially defaulted, on a total of $ 6.4 billion — almost half of which was from 122 real estate projects in Florida.

«Statistically» this year to date, «only» 30 municipal issuers have officially defaulted on $ 1.5 billion in bonds, but thousands of government authorities are in de facto default on payments, and madly scrambling for re-negotiation, or forebearance, or blind hope.

Buying individual bonds exposes investors to credit risk, the possibility that a bond issuer will default on their debt (i.e., that they won't pay back the lender).

4 Yield to Worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting.

Universal default still lives — credit card issuers may raise interest rates, even if a card holder's never been late on a payment — but the new rate may apply only to future purchases, per the CARD Act.

Depending on your credit card company, a number of other factors may cause you to incur the penalty rates as well, including but not limited to: exceeding your credit limit, or defaulting on another account with the same issuer.

This style of investing assumes there is a small likelihood of a default on a subordinated high yield issue from a high - quality issuer such as Vodafone, HSBC Holdings or Prudential for example.

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).

The lowest potential yield that can be received on a bond without the issuer actually defaulting.

This acts as collateral in case you default on the loan, and protects the card issuers while letting you build your credit score back up.

When you default on payments, the credit card issuer isn't allowed to go after the authorized user for payment because the user is just someone who has permission to make purchases against your account.

The credit default swap synthetically transfers credit risk on the portion of the $ 6 billion reference portfolio from GSCM to the ISSUER with respect to credit events.»

Like the name suggests, secured credit cards are lines of credit that are «secured» with collateral to cover the issuer's losses if you default on your payments.

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.

By buying a short term bond, you significantly reduce your exposure to interest rate moves, but your credit risk (the risk that the issuer may default on its payments) is still there.

They provide added flexibility for credit card users while giving some assurance to credit card issuers that the cardholder hasn't defaulted on their debt.

Should you ever default on a credit card payment, the credit card issuer can use the money in that account to cover your outstanding balance.

In this case the Australian Treasury is extremely unlikely to default on an AUD bond but in general an issuer could of course fail to make the payment.

While it may seem overly punitive, issuers justify the rate increase based on the increased default risk they face when cardholders are more than 60 days late on their payments.

To get these cards, the consumer must first pay a security deposit that the card issuer receives if the consumer defaults on their loans.

While delinquencies incur late payment fees, cardholders who go into default may find that they're unable to get credit cards, and if they can, the interest rate on them is usually very high, since card issuers will deem them a risk.

The lower the credit rating, the greater the risk that the issuer could default on its obligations, or be unable to pay interest or repay principal when due.

Discover's defaults rose to 3.15 percent of balances from 3.04 percent in November, with the issuer writing off $ 46.4 million on an annualized basis.

On the other hand, default in payment may result to loss to the card issuer.

Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but can not seek any further compensation from the borrower — even if the collateral asset does not fully cover the full value of the loan.

the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by making worst - case scenario assumptions on the issue by calculating the returns that would be received if any in - whole mandatory redemptive provisions are exercised by the issuer; partial redemptive provisions (such as sinking funds) are not included in yield to worst calculations; the yield to worst metric is used to evaluate the worst - case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios

If you default on payments, the card issuer keeps your deposit.

High - yield bonds, also known as «junk bonds,» generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue.

Of course, they also come with higher amounts of credit risk, the risk that a bond issuer will default on their coupon or principal payments.

Adverse conditions may affect the issuer's ability to pay interest and principal on these securities and, as a result, they may have a higher probability of default.

A troubled issuer is a company which has either defaulted on money payments due creditors, or where there appears to be a high degree of probability that such a default will occur.

A 2007 Boston Globe article reported that «Credit card companies woo struggling mortgage - holders,» and that «as sub-prime borrowers began to default on their mortgages in rapidly growing numbers this year, credit card issuers increased their efforts to sign up such customers with tarnished financial histories, according to a market research firm.»