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Bonds in sentence

2285 examples of Bonds in a sentence

Moreover, investments in bonds issued by their home governments require no buffer, regardless of the rating.
And a Portuguese banker declared that, while banks should reduce their exposure to risky government bonds, government pressure to buy more was overwhelming.
Moreover, Israel has established a new red line in Syria: the protection of Syria’s Druze community, with whom Israel’s own highly loyal Druze citizens have strong bonds.
Yet men all over the world tune in to American-made fantasies of male bonding and male escape – escape from the bonds of work and domesticity, and, if only for a youthful period of the male lifespan, from long-term commitment to women themselves.
And this time, the financial mechanisms involved are not highly complex structured financial products, but one of the oldest financial instruments in the world: government bonds.
By creating a system that is heavily dependent on highly rated government bonds, which are deposited at the European Central Bank in exchange for liquidity, Europe has given banks – particularly larger institutions – no choice but to purchase such bonds.
By treating eurozone-government bonds as risk-free, permitting commercial banks to hold them without any capital provision, and failing to apply limits on large-scale credit exposure to sovereign debt, the system encouraged undercapitalized banks to increase their bond purchases.
Given that Cypriot banks were heavily exposed to Greek debt, they suffered massive losses from the haircut imposed on Greek government bonds in 2011.
Furthermore, government bonds should no longer be treated as riskless, and they should be subject to the limits for large-scale credit exposure.
With a yield of more than 4.6%, Greece’s bonds were enthusiastically snapped up by institutional investors.
With the US increasingly prone to using its currency as an instrument of diplomacy, even of warfare – a process known in Washington as “weaponizing the dollar" – China, Russia, and Saudi Arabia, for example, may well be reluctant to shift even more of their wealth into US Treasury bonds.
In that case, China would no longer be a net buyer of foreign bonds and other assets.
If China wanted to continue to invest in foreign businesses and natural resources, it would have to become a net seller of bonds from its portfolio.
Much of the sovereign-debt accumulation of recent years has been enabled by quantitative easing, with central banks making large-scale purchases of government bonds.
The US Federal Reserve, the Bank of England, and the Bank of Japan now own 16%, 24%, and 22%, respectively, of all bonds outstanding.
Given that central banks are owned by the government, and that interest paid on outstanding bonds is remitted back to the national treasury, these government bonds are fundamentally different from those owned by other creditors.
Focusing on “net” government debt (which excludes intra-government debt holdings, such as the bonds owned by central banks) is a more effective approach to assessing and ensuring the sustainability of public debt.
Since 2007, the value of corporate bonds outstanding from nonfinancial companies has nearly tripled – to $11.7 trillion – and their share of global GDP has doubled.
Over the next five years, a record $1.5 trillion worth of nonfinancial corporate bonds will mature each year; as some companies struggle to repay, defaults will most likely rise.
In the US, 22% of nonfinancial corporate debt outstanding comprises “junk” bonds from speculative-grade issuers, and another 40% are rated BBB, just one notch above junk.
In other words, nearly two-thirds of bonds are from companies at a higher risk of default, including many US retailers.
Between 2007 and the end of 2017, the value of Chinese nonfinancial corporate bonds outstanding increased from just $69 billion to $2 trillion.
To be sure, MGI finds that in advanced economies, less than 10% of bonds would be at higher risk of default if interest rates were to rise by 200 basis points.
Similarly, in Europe, the share of bonds issued by at-risk companies is currently less than 5% in most countries, indicating that only the largest blue-chip companies have issued bonds so far.
Even at historically low interest rates (before the US Federal Reserve raised its benchmark rate to 1.75-2% on June 14), 18% of bonds (worth roughly $104 billion) outstanding in the US energy sector were at higher risk of default.
Already, 25-30% of bonds in these markets have been issued by companies at a higher risk of default (defined as having an interest-coverage ratio of less than 1.5).
In China, one-third of bonds issued by industrial companies, and 28% of those issued by real-estate companies, are at a higher risk of default.
Corporate defaults are already creeping upward in China; and in Brazil, one-quarter of all corporate bonds at a higher risk of default are in the industrial sector.
With the global corporate default rate already above its 30-year average and likely to rise further as more bonds come due, is the next global financial crisis at hand?
While individual investors in bonds may face losses, defaults in the corporate-bond market are unlikely to have significant ripple effects across the system, as the securitized subprime mortgages that sparked the last financial crisis did.
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