To be included in the index, the bonds must meet specific criteria, including minimum credit
ratings of the issuers.
The recent fast growth of the corporate market has been associated with a changing pattern in the credit
ratings of issuers.
«The same thing holds with bonds — so you have to look at the credit
rating of the issuer, [which can indicate] whether it can keep its promise [to pay you back with interest].»
In addition, the market value of a CD in the secondary market may be influenced by a number of factors including, but not necessarily limited to, interest rates, provisions such as call or step features, and the credit
rating of the Issuer.
Therefore, the performance of an ETN may be affected by both the performance of the particular index as well as the credit
rating of the issuer.
where Open image in new window is the CDS
rate of the issuer and the strike of the down - and - in put option is S0.
Prior to downgrading
the rating of an issuer, agencies often place the company on a «creditwatch» list.
Not exact matches
Ratings agency Moody's reported Monday that the rolls
of «potential fallen angels,» or
issuers with investment - grade debt currently in danger
of becoming junk, swelled by 17 in the third quarter, while no companies fell into the opposite category, called «potential rising stars.»
Rating service Moody's tracks covenant quality, essentially a measure
of standards that bond
issuers must meet, and reported Thursday that the latest reading remains near record highs, which indicates weak restrictions.
a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the
issuer goes to an underwriter to get their securities sold in the new issue market; for certificates
of deposit (CDs), this is the bank that has issued the CD; in the case
of fixed income securities, the
issuer of the security is the primary determinant
of the security's characteristics (e.g., coupon interest
rate, maturity, call features, etc..)
a program that offers fixed
rate senior and subordinated, unsecured obligations from a variety
of independent
issuers on a weekly basis, with a range
of maturities and structures available; maturities range from 9 months to 30 years for both callable and non-callable securities
The net proceeds from the Notes offering will be used by the
Issuer together with other available funds to optionally prepay in full a prior notes issuance (the «Old Notes») that had a weighted average interest
rate of 4.7 % at December 31, 2017.
FLIA will invest in fixed - and floating -
rate bonds from the full range
of governmental and corporate
issuers representing developed markets other than the U.S..
Private independent
rating services such as Standard & Poor's, Moody's Investors Service and Fitch
Ratings Inc. provide these evaluations
of a bond
issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest
rate risk (as interest
rates rise, bond prices usually fall, and vice versa) and the risk
of default, or the risk that an
issuer will be unable to make income or principal payments.
Fixed income investments entail interest
rate risk (as interest
rates rise bond prices usually fall), the risk
of issuer default,
issuer credit risk and inflation risk.
(The following statement was released by the
rating agency) NEW YORK, November 09 (Fitch) Fitch Ratings has downgraded the ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term Issuer Default Rating (IDR) to «BB +» from «BBB -&r
rating agency) NEW YORK, November 09 (Fitch) Fitch
Ratings has downgraded the ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term Issuer Default Rating (IDR) to «BB +» from «BBB -&
Ratings has downgraded the
ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term Issuer Default Rating (IDR) to «BB +» from «BBB -&
ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership, including the Long - Term
Issuer Default
Rating (IDR) to «BB +» from «BBB -&r
Rating (IDR) to «BB +» from «BBB -».
Changes in the financial strength
of a bond
issuer or in a bond's credit
rating may affect its value.
One red flag for lenders is that the volume
of energy debt
rated CCC or below — the weakest
ratings among junk bond
issuers — has more than doubled to $ 62 billion from a year ago, Fitch said in a June 12 report.
High - yield bonds represented by the Bloomberg Barclays High Yield 2 %
Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit
rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.
The metals, mining, and steel sector leads in positive bias (the proportion
of issuers with
rating with positive outlooks or on CreditWatch Positive) at around 18 %.
Consider these risks before investing: The value
of securities in the fund's portfolio may fall or fail to rise over extended periods
of time for a variety
of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific
issuer, industry, or sector and, in the case
of bonds, perceptions about the risk
of default and expectations about changes in monetary policy or interest
rates.
This typically occurs when interest
rates decline and the
issuer has incentive to refinance their debt at lower prevailing levels
of interest
rates.
Just as individuals have their own credit report and
rating issued by credit bureaus, bond
issuers generally are evaluated by their own set
of ratings agencies to assess their creditworthiness.
Their opinions
of that creditworthiness — in other words, the
issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's
rating and also affects the yield the
issuer must pay to entice investors.
They are also less likely to have call protection, which means that if a company's financial condition or credit
rating improves, the
issuer can call its outstanding bonds and take advantage
of lower funding
rates.
Indicative
of the BIS mandate to oversee central banks and help ensure financial stability, Carstens» response toed the line, justifying the institutions» existence as a trusted
issuer of money and controller
of exchange
rates.
The table to the right offers some illustration
of how many different
issuers may be required to help achieve diversification at different credit
ratings.
Ratings agencies research the financial health of each bond issuer (including issuers of municipal bonds) and assign ratings to the bonds being o
Ratings agencies research the financial health
of each bond
issuer (including
issuers of municipal bonds) and assign
ratings to the bonds being o
ratings to the bonds being offered.
a reduction in the
rating awarded a debt or equity security; a credit agency downgrades the debt
of a company, municipality, or governmental entity indicating a potential deterioration in the financial situation
of the
issuer and its ability to meet its obligations in full and / or on time.; a downgrade suggests investors are less certain to receive interest payments and return
of capital
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.
a municipal bond that is secured by an escrow fund; the escrow fund comes from the
issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date
of the first bond issue to pre-refund that issue; bond
issuers will typically do this during times
of lower interest
rates to lower their interest costs
At year - end 2013, we estimate pension funding levels for our 50 largest
rated US corporate
issuers increased by 19 percentage points to 94 %
of pension obligations, compared with a year earlier.
Brian led the charge in developing Morningstar's
issuer credit
ratings, creating and rolling - out one
of the firm's proprietary credit metrics, the Cash Flow Cushion.
While the
ratings agencies continue to lower their
ratings and outlooks
of European sovereign debt
issuers, investors can't seem to get enough
of the paper.
Some
issuers offer unsecured credit in the form
of short term loans with higher - than - average
rates.
Ratings are simply the
rating company's opinion
of whether or not the bond's
issuer will be able to meet its ongoing obligations.
Bank
of America Merrill Lynch raised a total
of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate
issuers rushed to take advantage
of low
rates ahead
of the Federal Reserve's plans to withdraw stimulus measures.
Be mindful
of the bond
issuer's credit
rating and the bond's duration.
Bonds are subject to interest
rate risk, call risk, reinvestment risk, liquidity risk, and credit risk
of the
issuer.
Bond funds are subject to interest
rate risk, which is the chance bond prices overall will decline because
of rising interest
rates, and credit risk, which is the chance a bond
issuer will fail to pay interest and principal in a timely manner or that negative perceptions
of the
issuer's ability to make such payments will cause the price
of that bond to decline.
An
issuer that is
rated AAA has an exceptional degree
of creditworthiness and can easily meet its financial commitments.
Securities
ratings provided by independent nationally recognized statistical organizations, also called Ratings Agencies, are appraisals of the financial stability of a particular issuer and its ability to pay income and return principal on your inve
ratings provided by independent nationally recognized statistical organizations, also called
Ratings Agencies, are appraisals of the financial stability of a particular issuer and its ability to pay income and return principal on your inve
Ratings Agencies, are appraisals
of the financial stability
of a particular
issuer and its ability to pay income and return principal on your investment.
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).
A cap is the maximum interest
rate the
issuer will pay regardless
of how high the reference
rate may go, and therefore protects the
issuer from escalating interest costs.
Although they can assist investors in evaluating the creditworthiness
of an
issuer,
ratings are not recommendations to buy, sell or hold a security nor do
ratings remove market risk.
An AAA
rating is the highest possible
rating assigned to the bonds
of an
issuer by credit
rating agencies.
Changes in the creditworthiness
of the
issuer (whether or not reflected in changes to the
issuer's
rating) can decrease or increase the current market value and may result in a partial or total loss
of your investment.
An AA +
rating is generally one step below the highest
rating (AAA) assigned to the bonds
of an
issuer by credit
rating agencies.
These days, such activity has been discouraged by card
issuers, given the higher fees applied to balance transfers (typically 4 %
of the transfer amount) and the low
rates of return
of alternative investments and savings accounts.