The law firm was in the middle
of bond holder litigation involving more than $ 2 billion in outstanding bonds.
Any productivity gains would have to be allocated to equity owners at the expense
of bond holders and workers who would merely tread water or lose ground as the economy expands.
This would result in direct losses, even
of the bond holders who have been paid.
As the balance shifts towards bonds, the desire
of bond holders will be prevent inflation and the pressure to prevent inflation will increase.
Not exact matches
Holders of Venezuelan
bonds are meeting with each other and considering forming committees, advisers and fund managers told Reuters, as questions mount about the feasibility
of President Nicolas Maduro's proposal to restructure $ 60 billion
of debt.
Even a debt - ceiling breach
of a week or two during which the U.S. Treasury keeps making principal and interest payments to
bond holders might hurt the U.S.'s rating.
Under the latest palliative arrangement (reached in October),
holders of Greek
bonds are expected to accept a 50 % loss on their investments.
BRAZZAVILLE, April 19 (Reuters)- Congo Republic's current efforts to restructure its external debt will not affect multilateral creditors or
holders of its Eurobond and regional
bond, Prime Minister Clement Mouamba said in a statement late on Wednesday.
After a week
of questions about Tesla's ability to pay back
bond -
holders and produce cars at a scale that would lessen the need for future capital raises, CEO Elon Musk drew criticism for joking about concerns surrounding the company in an April Fools» Day Twitter thread.
Although the retailers have been negotiating with
bond holders, who have accepted significant discounts and offered longer terms, the basic financials are enough for Moody's to rate 13.5 percent
of the retailers it follows as a Ca or Caa credit risk.
There is no share
holder buyer
of last resort, and so equity buyers can demand a higher return than
bond holders.
Compare that to the
holder of a high yield
bond who can ignore the ravings
of Mr. Market and sit tight until normality returns.
There is likely a lot
of concern today by
bond holders and commercial banks.
Private
holders of Greek
bonds are being squeezed too: for every 2
bonds they hold, they'll be offered a new one that is longer - dated and lower - yielding.
Second, Europe issues significantly fewer
bonds than the U.S. Citi estimates the ECB could source up to 89 %
of their
bond purchases from existing
holders rather than from new issuances.
Just this week Venezuelan president Nicolas Maduro called Venezuelan
bond holders to a meeting with Economy Minister Ramon Lobo to discuss the consequences
of U.S. sanctions.
President - elect Donald Trump's economic agenda
of fiscal spending and tax cuts, coupled with the Federal Reserve raising interest rates spells trouble for
bond holders.
The slated deal comes as Lynas progresses talks with Mt Kellett and the other 9 convertible
bond holders, including Fortress Investment Group, about amending the terms
of the
bond facility and extending the maturity.
Material Information - Material Information is
of interest to
holders of bonds or notes issued.
What makes these
bonds «convertible» is that the
holder of the
bond has the right to convert it into shares
of the company's common stock.
Sometimes Convenience Yields are earned, by
holders of government
bonds that are in short supply in the market.
The
holder of the convertible
bond is willing to accept a lower coupon for the potential upside appreciation
of the security.
China's central bank felt compelled to become the largest
holder of U.S. Treasury
bonds to keep its Yuan from rising and undermining the competitiveness
of Chinese exports in the U.S. marketplace.
Convertible Debt - the term convertible debt basically, means securities that can be converted to other specified amounts
of another security at the option
of the
holder and issuer, either single or both... Debentures or corporate
bonds are traded for commodities stock within a specific period.
In another crucial provision
of the European Central Bank's program, the bank would have equal status to other
bond holders — rather than holding itself above other investors and expecting to be paid back first in the event
of problems.
Some
holders of corporate
bonds (like the new Apple
bond) were suddenly down 10 % just on interest rates alone.
In contrast, when the price is too high, the protocol increases supply by issuing new Basecoins to pay back the
holders of Base
Bonds.
«Let's consider that U.S. 10 - year Treasury
bonds have been yielding around 1.7 % for most
of the year while the annual run rate
of inflation is 2.2 %, thus guaranteeing a destruction
of purchasing power for the
holders,» Brown writes.
Strauss - Kahn wanted to be president
of France, and therefore had to press to bail out French banks, which were the major
holders of Greek
bonds.
The consent, from more than 97 percent
of senior secured bondholders, follows similar approval from senior banking lenders and from
holders of its 1.3 billion euros
of high - yield
bonds issued via Lighthouse International Company SA, a unit
of Seat PG.
I personally believe that the above are good enough reasons to add pressure to Treasuries, but if we want more food for thought, we can not forget that China is the largest
holder of US government
bonds after the Fed and if the rhetoric around a trade war escalates we can assume that this point would most likely be touched by Chinese counterparties.
We believe that the Fed's continuing (and increasingly glaring) inability to normalize interest rates validates our long standing thesis that monetary extremism can not be unwound without triggering a slew
of unacceptably painful consequences for the
holders of risk assets and
bonds.
As in 2010 - 11 under Dominique Strauss - Kahn, French banks are major
holders of Greek
bonds (including via their ownership
of Greek banks).
We are also sceptical that
holders of high - yield
bonds would be motivated to switch into equities, given the pervasive overweight that already exists in this asset class,» he said.
Additionally, a
holder of a TIPS
bond is impacted by inflation; if inflation rises the
holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate
bonds).
One unintended consequence
of eternal QE may be that
holders of balanced, passive portfolios don't see the same defensive performance from
bonds as they have historically.
The municipality issue or sell the
bond to investors, the investor or
bond holder in exchange gives the municipality an agreed amount
of money for a period
of time; while the investor is paid a regular interest until the time the total amount is paid off.
Non-asset
holders were punished — their bank deposits now generate little or no income, and they were forced to move into riskier assets, such as stocks,
bonds, real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind
of market distortions does the Fed loaning out money at 0 % cause?).
Part
of the story told by
bond holders, is that in the course
of the trial, it came to light the government
of Puerto Rico might have been misleading their
bond holders and this law was a kind
of hail - mary.
Bonds can be a reliable source
of income for
holders and issuers alike.
China is the largest foreign
holder of American debt, holding about $ 1.17 trillion in United States
bonds, notes and bills in January, according to the Treasury Department.
In simple terms, a
bond holder is a lender who has loaned funds to the issuer
of the
bond.
Holders of these
bonds also locked in a coupon payment
of 4 % per year for the next 30 years should investors choose to hold these
bonds to maturity.
For example, if a borrower defaults on their mortgage, Fannie and Freddie are responsible for the losses on the loans they guarantee to investors, while Ginnie Mae is financially responsible for the
bond payments to the
holders of Ginnie Mae securities.
Holders of U.S. long
bonds are therefore faced with a conundrum.
Banks in the US have always been large
holders of bonds, but at the moment bank holdings pale in comparison to the magnitude
of bond exposure in the mutual fund complex and
bonds held at the household level.
Other agenda's such as cross currency rate manipulation, supporting domestic export industries, etc. are high on the list
of priorities for foreign
holders of US
bonds.
As
of the end
of the first quarter
of this year, the foreign community is the largest
holder of US Treasuries and corporate
bonds.
«In a minority
of cases, activist hedge funds may bring some lasting value for shareholders but largely at the expense
of workers and
bond holders; thus the impact
of activist hedge funds appears to take the form
of wealth transfer rather than wealth creation.»
Holders of their GO
bonds would probably get their money back but not necessarily when they expected.