If repeated storms and floods are likely to send property values — and tax revenue — sinking while spending on sea walls, storm drains or flood - resistant buildings goes up, investors
say bond buyers should be warned.
Not exact matches
European
bond buyers, for their part, have gone «risk - off» on what they see as exotic credits, Burgin
says.
Bloomberg: — Muni -
Bond buyers may overpay, SEC's Gallagher
says.
«We would like to see more asset - backed or corporate green
bonds, since issuance has been limited, and we are interested
buyers,»
says Delmar King, fund manager at Praxis, the investment arm of Everence Financial of Indiana.
Then, in addition to the interest received from XYZ, the
buyer will also reap a profit when he ultimately collects $ 1,000 (if all goes well) for a
bond he bought from you for only,
say, $ 900.
Usually on a fixed - coupon
bond (e.g. Government
bond) the interest rate is fixed for a given period (
say 10 years), and if market rates rise the face value of the
bond falls, to compensate for the lower return a new
buyer would get, compared to the market interest rate.
That isn't to
say this is the absolute bottom, but I think as we finally resolve the
bond insurer issue (one way or another) municipal
buyers will come back in.
Investors holding auction - rate
bonds issued by municipalities, schools and others will have to wait for «natural
buyers» to return to the market before auctions return to normal, Mr. Hoekstra
said.
In February, for example, Mesa West issued a CDO in which
bond buyers acquired 90 % of the lender's loans at 36 basis points over LIBOR, Friedman
says.
«This easy step not only protects the agent, but also forms strong
bonds with real
buyers,» Pringle
says.