Bonds
in sentence
2285 examples of Bonds in a sentence
And the European Central Bank would have fewer excuses to refuse Greek
bonds
as collateral.
So far, policymakers are talking only about exchanging old Greek
bonds
for cash (in buybacks) or new Greek
bonds.
The government enforces draconian anti-defamation legislation and compels many media organizations to buy $40,000
bonds
that are forfeited if the government wins a defamation suit.
Various catastrophe bonds, covering earthquakes and other disasters, and weather derivatives have begun trading on financial markets in recent years.
Only a small handful of international
bonds
are denominated in SDRs, because banks and firms do not find this option particularly attractive.
The main issuer of SDR
bonds
is the IMF’s sister organization, the World Bank (the Fund itself is not authorized to issue bonds).
And foreign entities are being authorized to issue renminbi-denominated
bonds
in China itself.
China’s existing portfolio of some $3 trillion worth of dollar
bonds
and other foreign securities exposes it to two distinct risks: inflation in the United States and Europe, and a rapid devaluation of the dollar relative to the euro and other currencies.
Inflation in the US or Europe would reduce the purchasing value of the dollar
bonds
or euro
bonds.
But China cannot reduce the volume of such
bonds
while it is running a large current-account surplus.
As for QE, central banks may simply run out of government
bonds
to buy.
Finally, most advanced economies need to repair or replace crumbling infrastructure, a form of investment with higher returns than government bonds, especially today, when bond yields are extremely low.
Family and social
bonds
remain potent in the face of adversity.
But that, too, went out the window in May, when it started buying even Greek junk
bonds.
The EU’s maneuvers may stabilize Europe in the short run and help it to withstand better the current speculative attacks on some of the euro countries’ government bonds, but they risk long-term destabilization.
In order to make local-government borrowing more transparent and accountable, the Third Plenum calls for streamlining the distribution of revenue between the central and local governments, increasing transfer payments to cities, and allowing local authorities to issue municipal
bonds
independently.
It is not as if there is no precedent for this approach; throughout history, governments have issued
bonds
in response to national emergencies.
In the aftermath of the summit, the euro’s exchange rate sank to its lowest level of the year (around $1.30), while yields on Italian five-year
bonds
hit a new high (almost 6.5%).
First, highly indebted countries should be allowed to swap existing debt for new
bonds
issued at a heavy discount.
This requires a second step: linking the new
bonds
to warrants tied to debtor countries’ GDP growth.
Converting existing sovereign debt into new
bonds
attached to GDP warrants would work like a debt/equity swap in a corporate bankruptcy.
In exchange for a reduction of its existing debt, the Argentinean government issued new
bonds
linked to GDP warrants and committed 5% of future annual GDP growth above 3.3% to a pool shared among creditors.
These Argentinean GDP warrants soon became tradable separately from the
bonds
to which they were initially linked, allowing their holders to cash in.
If interest-rate spreads on Spanish and Italian government
bonds
are any guide, bondholders are no longer betting on a eurozone breakup.
Germany needs both China’s markets and the funds that its government can deploy to purchase German and European
bonds.
Far more important, especially for Germany, is to get China to invest in and hold its
bonds.
In mid-August, at the First IISS Oberoi Lecture in Mumbai, Klaus Regling, the CEO of the European Financial Stability Facility, underscored the importance of Chinese demand for EFSF
bonds
and China’s role in stabilizing the eurozone.
This impressive rally has ignored a host of historical relationships, including the long-established correlation between the performance of stocks and government
bonds.
The BOJ’s recent decision to buy an unlimited number of government
bonds
to meet its new inflation target of 2% has effectively ended the guise of autonomy.
Among other things, Basel III stipulates that banks do not have to set aside cash against their investments in government
bonds
with ratings of AA- or higher.
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