Bondholders
in sentence
210 examples of Bondholders in a sentence
If
bondholders
knew that the government would protect them, they would not insist on getting stricter contractual terms when they face greater risks.
But it also counsels against protecting firms’
bondholders.
Thus, when a large financial firm runs into problems that require a government bailout, the government should be prepared to provide a safety net to depositors and depositor-like creditors, but not to
bondholders.
In particular, if the firm’s equity capital erodes, the government should not provide funds (directly or indirectly) to increase the cushion available to
bondholders.
Rather, bonds should be at least partly converted into equity capital, and any infusion of new capital by the government should be in exchange for securities that are senior to those of existing
bondholders.
Governments should not only avoid protecting
bondholders
after the fact, when the details of a bailout are worked out; but should also make their commitment to this approach clear in advance.
Some of the benefits of a government policy that induces
bondholders
to insist on stricter terms when financial firms take larger risks would not be fully realized if
bondholders
believed that the government might protect their interests in the event of a bailout.
The best policy should categorically exclude
bondholders
from the set of potential beneficiaries of government bailouts.
Bondholders
gain when interest rates fall.
While it will take a long time to complete the process of levying new taxes,
bondholders
will want to be assured that their bonds will be serviced and repaid.
As a result, executives were not exposed to the potential negative consequences that large losses could bring about for preferred shareholders, bondholders, and the government as a guarantor of deposits.
The Germans and other Europeans insist that they will provide new official financing to insolvent countries, thus keeping current
bondholders
whole, while simultaneously creating a new regime after 2013 under which all this debt could be easily restructured.
For example,
bondholders
could be encouraged to exchange existing bonds for GDP-linked bonds, which offer payouts pegged to future economic growth.
The creditors and
bondholders
who lent the money in the first place must carry their share of the burden, for the sake of the PIIGS, the EU, and their own bottom lines.
But, contrary to populist rhetoric, it is not just rich, well-connected
bondholders
who get bailed out.
That, in turn, would require MPS’s junior
bondholders
to take losses, unless the government breaches the EU’s bank “bail-in” rules, which would undermine the eurozone’s new banking union.
Meanwhile, the International Monetary Fund has raised the issue of official-sector debt reduction, possibly even by the European Central Bank, sending the message that a “haircut” for private
bondholders
will not be enough to return Greece to financial sustainability.
Germany insists on a deep restructuring – at least a 50% “haircut” for
bondholders
– whereas the European Central Bank insists that any debt restructuring must be voluntary.
The new thinking should put people first, and banks’ shareholders and
bondholders
second.
Even if the shareholders and
bondholders
lose everything, with the right restructuring, we can still save the banks and protect taxpayers and workers.
Investors should not worry, they argue, because the current bailout mechanism – the European Financial Stability Facility (EFSF) – has worked so far without any haircut for bondholders, and will continue to be applied until about 2013.
In both cases, because some
bondholders
owned CDS contracts, they stood to gain more from bankruptcy than from reorganization.
It is governments – and thus taxpayers and
bondholders
– that finance nuclear plants.
Bondholders
obviously don’t like it – they would rather get a gift from the government.
Depending on the program’s attendance rates and success at imparting numeracy and language skills, the Children’s Investment Fund Foundation will pay a return to
bondholders.
Second, once freed of their non-performing loans, banks would need to undertake precautionary recapitalizations, including the bail-in of subordinated
bondholders
and the immediate compensation of retail investors.
For starters, the risk of Rosneft defaulting – as well as the cost of providing subsidized loans – rests with the
bondholders.
If the
bondholders
are indeed the largest state-owned banks, the deal actually hurts the banking system: it increases the concentration of risk and implies additional losses from buying bonds with below-market interest rates.
Analysts and
bondholders
have also lobbied the government and the opposition not to seek financial support from the International Monetary Fund, for fear that the international community will demand that you accept a significant “haircut” on your investment, as has been required of Greece’s creditors.
Analysts and
bondholders
have also lobbied the opposition-controlled National Assembly to recognize Venezuela’s external debt in exchange for the freedom of political prisoners, implying that the payment of your bonds can be secured through ransom.
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