Here's a constitutionally plausible answer: he isn't going to threaten to not
repay bondholders, thereby not implicating the 14th Amendment.
Super sinkers are usually home - financing bonds that
repay bondholders their principal quickly if homeowners prepay their mortgages.
In sum, bond values on the secondary market change based mainly on the collective perception of investors about future inflation and the likelihood that the bond issuer will continue to make interest payments and
repay bondholders when the bond matures.
There is no guarantee of how much money will remain to
repay bondholders.
For an investing plan, it is the date on which the issuer of the bond must
repay the bondholder the borrowed amount.
Not exact matches
Pension obligations were expected to absorb only 5 or 10 percent of production costs, but now they are absorbing nearly all the reported profits, and threaten to eat into the money available to
repay the banks and
bondholders.
On the other hand, a secured bond is a bond in which specific assets are pledged to
bondholders if the company can not
repay the obligation.
Since bonds are more senior securities than stocks,
bondholders are much more likely to be
repaid than stocks in the event of a company bankruptcy.
Essentially the big lesson here is that when a company liquidates, the
bondholders are
repaid before the shareholders are; because of this, bonds are known as «senior securities» while stocks are considered more of a «junior security» — this seniority I'm talking about refers to how far down the food chain the securityholder is when it comes to repayment.
For example, a company that issues a bond generally must periodically pay
bondholders interest, but doesn't
repay the principal until the bond is redeemed.
The
bondholder loans the issuer money and the issuer promises to pay the
bondholder interest at a specified rate on the loan for a specified period of time and then to
repay the loan at expiration.
At maturity date, the full face value of the bond is
repaid to the
bondholder.
In exchange, the company or government promises to
repay you (the
bondholder) the amount you invest, plus interest, at a set point in time called a maturity date.
Bonds are considered less risky than stocks because bond prices have historically been more stable and because bond issuers promise to
repay the debt to the
bondholders at maturity.
Loans must be
repaid or the
bondholder can take legal steps, including forcing the company into bankruptcy.
The issuer is obligated to pay the
bondholder a specified amount, usually at specific intervals (interest payments) and to
repay the principal amount when the bond matures.
Jane will have to wait until the senior
bondholders and other creditors have been
repaid before she gets any of her original investment back.
The first being that
bondholders do not get any voting rights, but they do have legal recourse to get their money back should the issuer fail to
repay the bond.
Being senior, the loan is
repaid first (even before
bondholders) in the case of bankruptcy.
On the other hand, a secured bond is a bond in which specific assets are pledged to
bondholders if the company can not
repay the obligation.
Bond: Evidence of debt in which the issuer promises to pay
bondholders a specified amount of interest and to
repay the principal at maturity.