Example collocations logo

Bonds in sentence

2285 examples of Bonds in a sentence

Japan has resumed foreign-exchange intervention, and the US Federal Reserve and the Bank of England are preparing another large-scale purchase of government bonds – a measure called “quantitative easing,” which lowers long-term interest rates and indirectly weakens the currency.
Italian savers, for example, still hold a significant volume of foreign assets (including German bonds), and foreign investors still hold a sizeable share of Italian government bonds.
But interest rates on longer-term Italian government bonds (and Italian private-sector borrowing costs) are about 250 basis points higher than those on the German equivalents (this is the risk premium).
Under full renationalization, Italian investors would sell their foreign assets and acquire domestic bonds, which would insulate Italy from financial shocks abroad and lower the interest-rate burden for the economy as a whole.
Meanwhile, foreigners still hold Italian government bonds worth about 30% of GDP.
If these bonds were acquired by Italian investors (who would have to sell an equivalent amount of low-yielding foreign assets), Italians would save the equivalent of 0.73% of their country’s GDP.
Financial firms sell assets, like Treasury bonds or real-estate securities, for cash, and promise to buy those assets back (i.e., to repurchase them or, for short, to do a “repo”), typically the following day.
The analogous approach for Greece is to convert its current bonds into GDP-linked bonds.
We imagine a simple mechanism, modeled on the successful experience with Brady bonds.
These were bonds issued by distressed Latin American countries in the early 1990’s as part of an arrangement to reschedule their international debts.
A Second Chance for European ReformMUNICH – The European Central Bank has managed to calm the markets with its promise of unlimited purchases of eurozone government bonds, because it effectively assured bondholders that the taxpayers and pensioners of the eurozone’s still-sound economies would, if necessary, shoulder the repayment burden.
By contrast, any debt beyond 60% of GDP would have to be issued as junior “Red Bonds” under purely national responsibility.
For example, the European Central Bank should exclude Red Bonds from its repo facility and a standardized collective-action clause to facilitate debt rescheduling should be made mandatory for Red Bonds.
This is what distinguishes our proposal from suggestions that all eurozone debt be pooled in euro bonds in a spirit of solidarity.
The council would offer a take-it-or-leave-it proposal to the participating countries on the allocation of Blue Bonds for the coming year.
And countries unhappy with the system’s evolution could gradually exit it simply by rejecting their annual Blue Bond allocation for a sufficient number of years in a row – thereby no longer issuing Blue Bonds or guaranteeing the fresh Blue Bonds of others.
First, smaller countries with relatively illiquid sovereign bonds stand to benefit substantially from the extra liquidity provided by the Blue Bond.
The PBOC frequently does this by selling bonds to commercial banks or raising their reserve requirements.
Moreover, foreign investors remain reluctant to borrow from Chinese banks in renminbi, or to issue renminbi-denominated bonds in Shanghai.
As I pointed out, with the United States and global economy sliding into a severe recession, bank losses would extend well beyond sub-prime mortgages to include sub-prime, near-prime, and prime mortgages; commercial real estate; credit cards, auto loans, and student loans; industrial and commercial loans; corporate bonds; sovereign bonds and state and local government bonds; and losses on all of the assets that securitized such loans.
Falling interest rates help push up the prices of securities – both stocks and bonds – which are disproportionately held by the wealthy.
While the current yield on 10-year Polish government bonds of 4.7% appears to be at the edge of meeting the Maastricht long-term interest-rate benchmark, sustainability will depend on the fiscal policy outlook and on the overall credit risk.
The Eurozone’s Narrowing WindowPRINCETON – Portuguese authorities recently made a preemptive offer to their country’s creditors: Instead of redeeming bonds maturing in September 2013, the government would stretch its repayment commitment out to October 2015.
The ECB’s announcement of a new program to purchase sovereign bonds has lowered market interest rates.
This reaching for yield has driven up the prices of all long-term bonds to unsustainable levels, narrowed credit spreads on corporate bonds and emerging-market debt, raised the relative prices of commercial real estate, and pushed up the stock market’s price-earnings ratio to more than 25% higher than its historic average.
Favorable borrowing costs have fueled an enormous increase in the issuance of corporate bonds, many of which are held in bond mutual funds or exchange-traded funds (ETFs).
But, in that case, the mutual funds and ETFs have to sell those corporate bonds.
It is not clear who the buyers will be, especially since the 2010 Dodd-Frank financial-reform legislation restricted what banks can do and increased their capital requirements, which has raised the cost of holding bonds.
A too-rapid inflow of immigrants weakens bonds of solidarity, and, in the long run, erodes the affective ties required to sustain the welfare state.
Reallocation of China’s large foreign-exchange assets away from low-yield US Treasury bonds to higher-yield infrastructure investment makes sense, and creates alternative markets for Chinese goods.
BackNext