Example collocations logo

Bonds in sentence

2285 examples of Bonds in a sentence

Consider investors in Fannie and Freddie bonds.
The tax on banks had to be transformed into a commitment to provide fresh money to troubled financial institutions via the so-called “Tremonti Bonds.”
Under QE, the central bank buys government bonds, expanding the monetary base.
As time passes, the central bank receives interest income on its bonds, and, if it does not pay interest on excess reserves, this income increases its net worth.
The increase in the monetary base, however, is only temporary; when the bonds are redeemed, it reverts to its original level.
The growth pact can be properly financed by new sources of revenue, such as a financial-transaction tax and joint project bonds for infrastructure investment, or by curbing tax evasion and tax fraud and eliminating tax havens, as well as by more efficient and intelligent use of structural funds.
The European Investment Bank would be a good vehicle – in addition to new project bonds – to boost spending on major infrastructure projects (for example, in the energy sector).
As a third step, the GCC countries should issue debt and sukuk (Sharia-compliant bonds) to finance budget deficits as well as development projects and infrastructure investment.
Nowotny, the president of the National Bank of Austria, suggested that the European Stability Mechanism (ESM) might (if the German Constitutional Court allows it to come into existence) be given a banking license, which would allow it to borrow from the ECB and greatly expand its ability to purchase eurozone sovereign bonds.
Not surprisingly, financial markets interpreted his declaration to mean that the ECB would buy Spanish and Italian government bonds again under its Securities Markets Program, as it did earlier this year.
While any central bank must be able to conduct open-market operations to manage liquidity in financial markets, selective purchases of individual country bonds that bear high interest rates because of current and past fiscal profligacy is both unnecessary and dangerous.
A better rule for the ECB would be to conduct open-market operations by buying and selling a “neutral basket” of sovereign bonds, with each country’s share in the basket determined by its share in the ECB’s capital.
This “neutral basket” approach would permit the ECB to purchase substantial volumes of Italian and Spanish bonds, but only if it was also buying even larger amounts of French and German bonds.
Indeed, when the ECB controls interest rates on long-term bonds, it is hard for political leaders, parliaments, and voters to know whether they have achieved significant fiscal improvement.
Moreover, because the ECB cannot simply buy sovereign bonds without regard for individual governments’ fiscal policies, it risks finding itself in the politically dangerous position of deciding whether a country’s fiscal actions are tough enough to be rewarded with lower interest rates.
Finally, Germany might not continue to accept the default risks implied by large ECB purchases of high-risk sovereign bonds.
For all of these reasons, the ECB’s direct purchase of high-yield sovereign bonds to limit their interest rates would be a mistake.
It would also be a mistake to do this indirectly by another trillion-euro long-term refinancing operation aimed at encouraging commercial banks to buy those bonds.
And it would be a mistake to allow the ESM to have a banking license so that it can borrow from the ECB, greatly increasing its purchase of peripheral countries’ bonds.
Taking the lead in October 2007, when it issued a $750 million Eurobond with an 8.5% coupon rate, Ghana earned the distinction of being the first Sub-Saharan country – other than South Africa – to issue bonds in 30 years.
It is no secret that sovereign bonds carry significantly higher borrowing costs than concessional debt does.
Nigerian commercial banks have already issued international bonds; in Zambia, the power utility, railway operator, and road builder are planning to issue as much as $4.5 billion in international bonds.
In March 2009 – less than two years after the issue – Congolese bonds were trading for 20 cents on the dollar, pushing the yield to a record high.
Should oil and copper prices collapse, Angola, Gabon, Congo, and Zambia may encounter difficulties in servicing their sovereign bonds.
These countries can perhaps learn from the bitter experience of Detroit, which issued $1.4 billion worth of municipal bonds in 2005 to ward off an impending financial crisis.
Since then, the city has continued to borrow, mostly to service its outstanding bonds.
In the process, four Wall Street banks that enabled Detroit to issue a total of $3.7 billion in bonds since 2005 have reaped $474 million in underwriting fees, insurance premiums, and swaps.
In the US, the interest rate on government bonds now rises from 1.80% at five years to 2.86% for 10-year bonds and 3.70% for 30-year bonds.
Comparing these interest rates with the yields on government inflation-protected bonds shows that the corresponding implied inflation rates are 0.9% for five years, 1.3% for 10 years and 1.7% for 30 years.
The banking sector has been deemed “cured”; demand for Spanish bonds has soared; and the country can once again raise capital at reasonable interest rates on the market.
BackNext