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Bonds in sentence

2285 examples of Bonds in a sentence

Thus, rather than tying executive pay to a specified percentage of the value of the bank’s common shares, compensation could be tied to a specified percentage of the aggregate value of the bank’s common shares, preferred shares, and all the outstanding bonds issued by the bank.
Economists applauded Argentina’s attempt to avoid this outcome through a deep restructuring accompanied by the GDP-linked bonds.
They bought the old bonds at a fraction of their face value, and then used litigation to try to force Argentina to pay 100 cents on the dollar.
After all, what developing country with its citizens’ long-term interests in mind will be prepared to issue bonds through the US financial system, when America’s courts – as so many other parts of its political system – seem to allow financial interests to trump the public interest?
But it is increasingly clear that ultra-easy monetary policy is impeding the necessary process of deleveraging, threatening the “independence” of central banks, raising asset prices (especially for bonds) to unsustainable levels, and encouraging governments to resist making needed policy changes.
In the eurozone, lower long-term rates for government bonds are thus unlikely to improve the corporate sector’s financing conditions and boost investment demand.
By contrast, in the US, a much larger proportion of investment is financed by issuing bonds, which can have a longer maturity than bank loans.
Moreover, these bonds are priced as spreads on the government-bond yield curve, implying that QE will have an immediate impact on enterprises’ financing costs.
When the central bank buys large amounts of bonds, all asset prices, including housing, tend to increase.
This, rather than the fear that the ECB might end up buying the bonds of untrustworthy governments, is the real argument against QE in the eurozone.
They are doing this by promising to keep short-term rates low; maintaining large portfolios of private and government bonds; and, in Europe and Japan, continuing to engage in large-scale asset purchases.
If that happens, the ECB may well be compelled to initiate large-scale purchases of eurozone government bonds through its so-called “outright monetary transactions” scheme – a plan that many German policymakers and economists staunchly oppose.
As a result, yields on ten-year US bonds could jump from 2.5% to 3.5% or more in the year ahead – and ultimately much higher.
The European Central Bank should also step up its recently announced program of quantitative easing by overriding Bundesbank objections and moving to large-scale purchases of sovereign debt – including government bonds of struggling eurozone countries.
Governments can offer a menu of new bonds worth some fraction of the value of their existing obligations.
Bondholders can be given a choice between par bonds with a face value equal to their existing bonds but a longer maturity and lower interest rate, and discount bonds with a shorter maturity and higher interest rate but a face value that is a fraction of existing bonds’ face value.
First, bondholders will need to be reassured that their new bonds are secure.
Promoting a pan-European private placement market might help, as would aligning standards for covered bonds.
A decrease in the real interest rate – that on government bonds – to -3% or even -4% will make little or no difference.
And Nobel laureate Robert Shiller agrees, warning that excessively low interest rates have created “overheated asset markets – real estate, equities, and long-term bonds – [which] could lead to a major correction and another economic crisis.”
Finally, there were unprecedented purchases of Spanish, Portuguese, Greek, and Irish bonds by the European Central Bank.
One reason the Greek crisis is so difficult is that European banks are undercapitalized, overleveraged, and stuffed full of Greek bonds, thereby ruling out the possibility of restructuring – and thus lightening – Greece’s debt load.
And widening interest-rate spreads on government bonds do not bode well, either, as this will quickly lead to pressure for further spending cuts.
When savers in other indebted euro countries such as Portugal and Spain observed this, they would fear similar losses and move their money to banks in Germany or Austria, as well as sell their holdings of Portuguese or Spanish government bonds.
If holders of Portuguese bonds are alarmed by a future Greek default, the ECB will simply increase its bond buying; with no limit to its buying power, it will easily overwhelm any selling pressure.
Again, there is no limit to how much money the ECB can recycle, provided Portuguese banks remain solvent – which they will, so long as the ECB continues to buy Portuguese government bonds.
After flirting with disaster last July, interest-rate spreads for eurozone bonds have generally been subdued, and financial segmentation has been slowly reversed (that is, at least before European officials embarked on the controversial path of trying to impose losses on guaranteed bank deposits in Cyprus).
As Brazil, Colombia, South Korea, and others have learned, limited controls that target specific markets such as bonds or short-term bank lending do not have a significant impact on key outcomes – the exchange rate, monetary independence, or domestic financial stability.
During the financial crisis, the monetary authorities were called on to assume temporary emergency powers, including massive purchases of government and private-sector bonds.
And, while the EFSF is not equipped to confront simultaneous crises in Spain and Italy, it has now been authorized to prevent such crises – or will be once national parliaments ratify the agreement reached on July 21 – by intervening on secondary debt markets to reduce interest-rate spreads on national bonds.
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