Sentences with phrase «when bond holders»
The debt goes to whoever buys the bonds, and the US government either pays up when bond holders redeem their bonds or it doesn't.
https://politics.stackexchange.com/ Not exact matches
In contrast, when the price is too high, the protocol increases supply by issuing new Basecoins to pay back the holders of Base Bonds.
Holders of their GO bonds would probably get their money back but not necessarily when they expected.
A capital gain occurs when an asset such as a stock or bond increases in value, making it worth more than what the holder initially paid for it.
When a bond is purchased for its face amount the bond issuer agrees to pay the bond holder a fixed amount of interest for a specific period of time.
As bonds mature during the year leading up to the termination date, the proceeds will be reinvested in cash and cash - equivalents and when the ETF terminates, it will make a cash distribution to unit holders equivalent to the ETF's Net Asset Value.
Bearer: Certificates (usually bonds) that are not registered in the holder's name, but are payable to the presenting party when due.
For this reason bond holders receive a lower rate of interest when compared to Debentures coupon rates.
When a bond is sold, an investor may also recognize a capital loss if the sale proceeds (adjusted for selling costs) are less than the holder's tax basis.
Sometimes when a company's common stock continues to perform poorly, in a capital restructure, bonds may be converted to preferred shares, which gives bond holders continued income payments as dividends.
Since mortgage borrowers will tend to exercise this right when it is favourable for them and unfavourable for the bond - holder, buying an MBS implicitly involves selling an option.
Because everyone is losing out on companies like AIG... except for the bond holders, you sort of have to worry that when everything shakes out, the rules for bonds may change.
In other words, if the buyer's bid was accepted, he would pay less than the current bond holder did when the bond was first issued, because prevailing interest rates are now higher than 5 % on similar tax - exempt bonds.
When they mature, the bond holder will suffer a capital loss.
As mentioned, a bond pays a fixed rate of interest during its life — and when a bond matures, the holder gets the bond's face value.
Only 3.4 % of high yield bond issuers have historically been unable to pay back their bond holders, but when they are unable to pay, bond holders have typically recovered a little less than half of their investment.
While this sounds good for savers — interest rates could rise — it is bad news for the holders of government bonds, which fall in value when the yield rises.
But when these bonds mature, holders will only get the bonds» face value, meaning the portfolio will incur predictable capital losses.
Do you know what Larry MacDonald was comparing when he said that holders of equity mutual funds would have been better off investing in bonds?
These open - end bond mutual funds have to sell the underlying bonds when bond - fund holders are getting cold feet and begin selling that mutual fund.