Sentences with phrase «payments on bonds»

Even if you do find an agent who is willing to work with you, you may discover that interest payments on your bonds have stopped because the issuer called the bond well before the maturity date.
In other words, investors believe that there is no chance that the U.S government will default on interest and principal payments on the bonds it issues.
First of all, payments on bonds cease during the actual bankruptcy / restructuring process, which can drag on for quite some time.
Most of the fund's income comes from interest payments on the bonds.
A group of three different credit agencies work together to calculate the score, which measures how likely the government is to make payments on the bonds that it issues once they mature.
the Treasury was unable to move enough precious metal to service its debt, and missed interest payments on bonds.
Those include interest payments on bonds for school construction and renovation projects approved by voters.
The insurance companies have promised to make timely interest and principal payments on any bonds covered by insurance if Puerto Rico defaults, said Rob Williams, director of income planning at the Schwab Center for Financial Research.
The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state - run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.
For example, an interest rate swap is a derivative whereby two parties exchange, or «swap,» interest payments on a bond; one side might get a constant 3 percent each payment period, while the other gets the LIBOR rate (a benchmark rate that some banks charge each other for short - term loans).
Current law allows companies to deduct interest payments on bond income.
In order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bond.
Note that this total payment of principal and interest is much larger than the $ 6,000 interest only payment on a bond.
The interest payments on a bond are usually fixed.
Indeed, if rates rise gradually, the interest payments on a bond fund will increase as older bonds mature and newer ones are purchased with higher coupons.
Although property deals in which the rental income will cover all of the expenses [including the down payment on the bond] are becoming much more limited, these can still be found in certain niche markets.

Not exact matches

Wall Street bankers have cleverly sliced and diced payments on everything from home mortgages and cars to David Bowie's song royalties to create new kind of bonds.
While Venezuela has kept current on its bond payments, it has paid some coupons late, leading ratings agencies to declare a selective default and keeping creditors guessing.
For the most part, China, which has owned around $ 1 trillion of U.S. bonds for several years, has held on to these assets, collecting billions in interest payments.
For bonds this means issues that are not at risk of defaulting on a payment; for stocks a dividend is essential, and not one at risk of a cut, or one that fluctuates through good times and bad.
Two companies that guaranteed payments on Detroit bonds, Syncora Guarantee Inc and Financial Guaranty Insurance Co, received options to develop parcels of land.
«My father was a retiree who lived on social security payments and monthly dividends from some stocks and bonds that he owned.»
The projected benefit payments are matched with the yields on these bonds to determine an appropriate discount rate for the plan.
Those payments cover both the loan payment to the state and 90 percent of the annual debt service on bonds the city issued to build the arena, city Finance Director Todd Hurley said.
But there's a pretty good argument that payments on Argentina's euro - denominated bonds never flow through the judge's jurisdiction: Argentina gives the money to a bank in Buenos Aires, which transfers it to a bank in Frankfurt, which holds it in the name of a bank in Brussels, which transfers it to a London nominee for Belgian and Luxembourg clearinghouses, which pays it to bondholders.
Next month, cash payments for the interest on certain bonds are due.
But as investors bid up bond prices, the yields come down e.g. $ 10 dividend payment on a $ 100 bond = 10 % dividend yield, but if the bond gets bid up to $ 200, the dividend yield is only 5 %.
The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.
The only thing that appears is the interest payments on the 50 - year bonds; again not a big deal.
You could potentially lose money in your bond fund depending on interest rate movements around the time you actually need to make your payments.
Investors in Treasury notes (which have shorter - term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment.
Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.
The bill would also allow state and local governments to issue Build America Bonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projBonds that provide a direct payment from the federal government for a part of the interest paid on bonds that finance government works projbonds that finance government works projects.
Typically they make periodic dividend payments based on the interest paid by the bonds held in the fund.
David Kotok, chairman at Cumberland Advisors, discusses Puerto Rico defaulting on two bond payments and what it means for the bond market and the country.
The bonds used as the new collateral will need to generate enough interest to cover all future payments on the loan; otherwise, you may have to pay a penalty.
The order is the first taken under the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act enacted this past week, which gives the governor emergency powers to deal with the fiscal crisis, including the ability to declare a moratorium on all bond payments.
Payable Date: Date on which a declared stock dividend or a bond interest payment is scheduled to be paid.
When the U.S. payments deficit pumps dollars into foreign economies, these banks are being given little option except to buy U.S. Treasury bills and bonds which the Treasury spends on financing an enormous, hostile military build - up to encircle the major dollar - recyclers China, Japan and Arab OPEC oil producers.
Two companies that guaranteed payments on Detroit bonds and were the last major holdout creditors in the case, Syncora Guarantee Inc [SYCRFS.UL] and Financial Guaranty Insurance Co [FGIC.UL], received options to develop parcels of land.
Espirito Santo Financial Group SA, which owns 25 percent of the lender, fell 8.9 percent before the company suspended trading earlier in stocks and bonds, saying it's «currently assessing the financial impact of its exposure» to Espirito Santo International, which has missed payments on short - term paper.
The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.
These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders» principal.
Event risk A bond's payments are dependent on the issuer's ability to generate cash flow.
Hovnanian skipped an interest payment due Tuesday on bonds it repurchased and parked with an affiliate, opening the door for GSO to collect payouts on credit - default swaps that insure against nonpayment.
So on the next screen, the tool suggests a bond for each rung of the ladder and shows a summary of the ladder, including the expected yield and annual interest payments.
Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
Many make periodic dividend payments based on the interest paid by the bonds held in the fund.
Generally, municipal bonds» interest payments are tax - free on the federal level and if they're issued by your state, you won't have to pay state taxes.
A bond indenture makes two primary promises: to make generally fixed semi-annual interest payments and to redeem the bond at par value on maturity date.
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