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Bonds in sentence

2285 examples of Bonds in a sentence

The Maastricht-compliant part of its members’ sovereign debt would be restructured with longer maturities (equal to the maturity of the ECB bonds) and at the ultra-low interest rates that only the ECB can fetch in international capital markets.
Finally, GDP-indexed bonds and other tools for dealing sensibly with unsustainable debt could be applied exclusively to member states’ debt not covered by the program and in line with international best practices for sovereign-debt management.
Similarly, with its outright monetary transaction (OMT) program, the European Central Bank has offered to buy peripheral eurozone countries’ sovereign bonds in the secondary market – provided that they sign up to agreed reforms.
QE2, in which the Fed bought long-term government bonds, did not have a discernible effect on long-term government interest rates.
Bolder pensioners, desperate to generate higher returns, may take undue risks – for example, investing in junk bonds – that could jeopardize their nest eggs.
Some state and local governments are experimenting with new “pay-for-performance” contracts – sometimes called social impact bonds (SIBs) – to promote social innovation.
Perhaps burned by the way stock prices and real estate collapsed when the 1980’s bubble burst, savers would rather go for what they view as safe bonds, especially as gently falling prices make the returns go farther than would be the case in a more normal inflation environment.
As the population ages and shrinks, more people will retire and start selling those government bonds that they are now lapping up.
It could do so by buying Italian and Spanish bonds in the secondary market with the pre-announced intention of keeping their sovereign interest rates below a certain threshold for a certain time.
It is likely that Draghi’s statement will indeed be followed by ECB purchases of Spanish (and Italian) sovereign bonds.
The meaning of these words became clear with the subsequent announcement of the ECB’s “outright monetary transactions” (OMT) scheme, under which it would purchase short-term government bonds issued by countries benefiting from the European rescue fund’s conditional support.
British government bonds now offer significantly lower interest rates than those of France, Italy, or Spain, even though the United Kingdom’s fiscal position is considerably worse.
But Germany sees no need to stimulate its own economy, and is willing to consider only modest eurozone measures, such as additional capital for the European Investment Bank, a small pilot program for European Union “project bonds” for infrastructure investment, and more rapid deployment of unspent EU structural funds.
Green bonds have taken off, with upwards of $40 billion issued in 2014, and they are likely to become only more popular as clearer standards and regulations are established.
In 2011-2012, there was basically no difference between the yields on US and German government bonds; today, the spread is around three percentage points.
Portugal and Ireland have recently seen their bonds downgraded to junk status.
But how can debt relief be achieved for the sovereign without imposing massive losses on Greek banks and foreign banks holding Greek bonds?
The answer is to emulate the response to sovereign-debt crises in Uruguay, Pakistan, Ukraine, and many other emerging-market economies, where orderly exchange of old debt for new debt had three features: an identical face value (so-called “par” bonds); a long maturity (20-30 years); and interest set well below the currently unsustainable market rates – and close to or below the original coupon.
The advantage of a par bond is that Greece’s creditors – banks, insurance companies, and pension funds – would be able and allowed to continue valuing their Greek bonds at 100 cents on the euro, thereby avoiding massive losses on their balance sheets.
First, government bonds are the reference asset for banks and insurers, because they are easily tradable and ensure liquidity.
Obviously, any doubt about the value of such bonds could cause turmoil.
With bonds of “peripheral” eurozone nations continuing to fall in value, the risk of Irish, Greek, and Portuguese sovereign defaults is higher than ever.
This comes despite the combined bailout package that the European Union, International Monetary Fund, and European Central Bank created for Greece in May, and despite the ECB’s continuing program of buying peripheral EU countries’ bonds.
Patrick Honohan, the governor of Ireland’s central bank, has labeled the interest rates on Irish government bonds “ridiculous” (meaning ridiculously high), and IMF researchers argue that default in Ireland and Greece is “unnecessary, undesirable, and unlikely.”
It is no surprise that the ECB is now Ireland’s largest creditor – through buying up its government bonds.
Investors naturally respond to unsustainable debt by selling bonds until interest rates become “ridiculous.”
Sovereign debt was eventually restructured through the creation of “Brady bonds.”
The trick was to offer banks the opportunity to swap their claims on (insolvent) Latin American countries into long-maturity, low-coupon bonds that were collateralized with US Treasuries.
Rather than continuing to pile new debts onto bad debts, the EU stabilization fund could be used to collateralize such new par bonds.
Creditors could be offered these par bonds, or a shorter-term bond with a higher coupon – but with debt principal marked down.
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