Sentences with phrase «most bond defaults»

Not exact matches

The Obama Administration's Wall Street managers have kept the debt overhead in place — toxic mortgage debt, junk bonds, and most seriously, the novel web of collateralized debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.

U.S. government bonds offer the most protection against default.

Treasury bonds are considered by most to be free of default risk, so they are the benchmark to which all other types of bonds are compared.

If the film were described as a tutorial on MBS (Mortgage - backed Securities), CDO (Collateralized Debt Obligations), Credit Default Swaps, Tranches, Bond Ratings, and Sub-Prime ARMs, most people's eyes would glaze over and they would keep skimming for showtimes of other new movie releases.

Lower volatility than most stocks and high - yield bond funds due to more reliable income sources and lower default risk

In fact, most bond covenants provide for no dividend payments, distributions, or redemption of preferred shares if these would result in default under the terms of the bond indentures.

Even if the average default rate shot up by 50 %, average p2p investing returns would still be 4 % which is above the return on most corporate bonds.

Credit rating Most bonds are allocated a credit rating to indicate to an investor the likelihood of a subsequent default...

The CDS market is generally viewed as the most efficient and liquid market for protection against corporate bond defaults.

A credit default swap is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage - backed securities or corporate bonds.

In fixed income, in high yield bonds, we have concluded that the most efficacious way, the most reliable way to pursue success is through the avoidance of defaults, not through the pursuit of upgrades or takeovers or other salutary events, but through the avoidance of negative events.

As for distressed, if we look at high - yield bonds as a proxy, 5 % yields now leave little room for error... and let's not even mention Euro high - yield, where the spread actually fell below the most recent default rate!?

To assist in the evaluation of an issuer's creditworthiness, ratings agencies, such as Moody's Investors Service and Standard & Poor's analyze a bond issuer's ability to meet its debt obligations, and issue ratings from «Aaa» or «AAA» for the most creditworthy issuers to «Ca», «C»,»D», «DDD», «DD» or»D» for those in default.

For markets that are by necessity thin (which in the Arrow - Debreu sense as I read it is most markets) examples being buying or selling a certain house, an obscure bond, or offering / receiving credit default on a thin slice of a securitization, there is no way that complete markets could exist.

Because there is almost no risk of default by the government, the return on Treasury bonds is relatively low, and a high inflation rate can erase most of the gains by reducing the value of the principal and interest payments.