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Bonds in sentence

2285 examples of Bonds in a sentence

That is why regulators and policymakers should continue to monitor existing and potential risks, such as those arising from credit default swaps on corporate borrowers or complex securitization of bonds.
They should also welcome the establishment of electronic platforms for selling and trading corporate bonds, to create more transparency and efficiency in the marketplace.
Europe must break the vicious circle linking distressed sovereign borrowers with banks that are obliged, or at least encouraged, to buy their bonds, which in turn provide the funding for bank rescues.
When the euro was introduced, regulators allowed banks to buy unlimited amounts of government bonds without setting aside any equity capital, and the ECB discounted all eurozone government bonds on equal terms.
Commercial banks found it advantageous to accumulate weaker countries’ bonds to earn a few extra basis points, which caused interest rates to converge across the eurozone.
When financial markets discovered that supposedly riskless government bonds might be forced into default, they raised risk premiums dramatically.
This rendered potentially insolvent commercial banks, whose balance sheets were loaded with such bonds, giving rise to Europe’s twin sovereign-debt and banking crisis.
The ECB’s long-term refinancing operation enabled Spanish and Italian banks to buy their own countries’ bonds and earn a large spread.
Most telling is that Britain, which retained control of its currency, enjoys the lowest yields in its history, while the risk premium on Spanish bonds is at a new high.
Unconventional Monetary Policy on StiltsNEW YORK – With most advanced economies experiencing anemic recoveries from the 2008 financial crisis, their central banks have been forced to move from conventional monetary policy – reducing policy rates via open-market purchases of short-term government bonds – to a range of unconventional policies.
There was quantitative easing (QE), or purchases of long-term government bonds, once short-term rates were already zero.
This was accompanied by credit easing (CE), which took the form of central-bank purchases of private or semi-private assets – such as mortgage- and other asset-backed securities, covered bonds, corporate bonds, real-estate trust funds, and even equities via exchange-traded funds.
The aim was to reduce private credit spreads (the difference between yields on private assets and those on government bonds of similar maturity) and to boost, directly and indirectly, the price of other risky assets such as equities and real estate.
These policies did indeed reduce long- and medium-term interest rates on government securities and mortgage bonds.
Nominal interest rates are now negative not only for overnight debt, but also for ten-year government bonds.
Indeed, about $6 trillion worth of government bonds around the world today have negative nominal yields.
Moreover, while QE has benefited holders of financial assets by boosting the prices of stocks, bonds, and real estate, it has also fueled rising inequality.
Think of direct purchases of stocks, high-risk corporate bonds, and banks’ bad loans.
Central banks have tried to avoid the confidence fairy by printing money – technically, by buying government bonds on the secondary market.
Yet, even in this case, the government should be able to service its debt if it can somehow induce its citizens to sell their foreign assets and buy domestic government bonds instead.
Fostering domestic savings, and getting citizens to buy bonds of their own government instead of keeping their money abroad, is just as important.
Innovation and InequalityPARIS – When the benefits of economic growth are distributed very unequally, social bonds fray.
Our rules now encourage investors in infrastructure and other projects with limited foreign earnings to issue Masala bonds (whereby Indian companies can borrow abroad in rupees), or to borrow long term, thereby limiting their risk when the exchange rate moves against them.
With one in four Spaniards unemployed and Spain’s sovereign bonds rated just above junk status, Spain seems to be on the edge of falling into the abyss.
This means that the ECB will not be able to follow in the footsteps of the Bank of Japan, which continues to purchase large volumes of government bonds, without any visible pick-up in inflation.
Where such loosening of the bonds is still not enough, it may be possible in some cases to arrange an amicable divorce, as happened when Czechoslovakia peacefully divided into two sovereign countries in 1993.
Re-profiling means lengthening the maturity of bonds while preserving principal and, generally, the coupons.
And the European Central Bank has begun to buy government bonds, including those of Greece, at prices well above those that would prevail in a free market.
The decision to buy Greek bonds directly was not unanimous.
If Greece were forced to restructure its debt and impose a “haircut” on holders of its bonds, the ECB would incur a sizeable loss.
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