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Bonds in sentence

2285 examples of Bonds in a sentence

The sharp rise in domestic interest rates was necessary not only to stabilize the currency, but also to make it attractive for investors to roll over large amounts of peso bonds coming due in early May.
One bit of good news is that rollover risk on domestic bonds is not nearly as high as some newspaper headlines have suggested, because the lion’s share is held by local banks and public-sector entities that have large and stable liquidity needs.
Yields on Irish government bonds have fallen below 3%.
Last month, Portugal was able to issue ten-year bonds at 3.57%.
Even Greece has been able to sell five-year bonds at rates below 5%.
But innovative new schemes, such as clean-tech bonds and third-party financing, are changing the picture.
Second, for most global investors, these economies’ bonds are a quasi-automatic component of portfolio allocations, so their governments’ budget deficits are financed in part by other countries’ savings.
Commodity bonds may offer a neat way to circumvent these risks.
Jamaica, for example, would issue aluminum bonds;Nigeria would issue oil bonds;Sierra Leone would issue iron-ore bonds; and Mongolia would issue copper bonds.
The advantage of such bonds is that in the event of a decline in the world price of the underlying commodity, the debt-to-export ratio need not rise.
When one asks finance ministers in commodity-exporting debtor countries, they frequently reply that they fear insufficient demand for commodity bonds.
That is a surprising proposition, given that commodity bonds have an obvious latent market, rooted in real economic fundamentals.
Surely there is at least as much natural demand for commodity bonds as there is for credit-default swaps and some of the bizarrely complicated derivatives that are currently traded!
A multilateral agency such as the World Bank could play a critical role in launching a market in commodity bonds.
Instead of denominating a loan to Nigeria in terms of dollars, the Bank would denominate it in terms of the price of oil and lay off its exposure to the world oil price by issuing that same quantity of bonds denominated in oil.
If the Bank lends to multiple oil-exporting countries, the market for oil bonds that it creates would be that much larger and more liquid.
This principal-agent problem is much diminished in the case of commodity bonds.
The Eurogroup, for example, has declared that all eurozone sovereign bonds issued after January 1, 2013, should include CACs, which render a government’s debt-restructuring proposal legally binding on all bondholders if a majority of bondholders accept the deal.
So-called frontier economies have issued record levels of sovereign bonds, while bilateral creditors, like China, continue to invest heavily.
Central Banking DefloweredFLORENCE – After the European Central Bank announced on May 9 that it would buy the government bonds of Mediterranean countries experiencing severe fiscal strains, critics complained that the Bank had “lost its virginity.”
As investors sought the higher yields on land, property, equities, bonds, and bank deposits that were attainable in emerging markets after 2008, capital inflows to Latin America tripled, boosting asset prices, credit, and aggregate demand.
The commercial banks could sell Treasury bills and longer-term bonds to the Fed, receive reserves in exchange, and earn a small but very safe return on those reserves.
That gave the Fed the ability in 2010 to begin its massive monthly purchases of long-term bonds and mortgage-backed securities.
Given that its debt will still be about 170% of GDP this year, the 4.1%-of-GDP interest bill implies that the Greek government pays an average interest rate of just 2.4% – far less than the nearly 9% rate that the market is now charging on ten-year Greek government bonds.
If Greece had to borrow at the market interest rate on ten-year bonds, its deficit would rise by 6.5% of the Greek government debt or 11% of GDP.
The Draghi Put on TrialCAMBRIDGE – In the summer of 2012, European Central Bank President Mario Draghi pledged to do “whatever it takes” to save the euro, including purchasing “unlimited” amounts of struggling governments’ bonds.
One key argument for forcing central banks to adhere to strict inflation targets is that it eliminates the temptation to use “monetary financing” (purchases of government bonds) unexpectedly, either to stimulate the economy or to inflate away its debt.
These countries’ households continue to save, accumulating deposits at their local banks and buying bonds from their local wealth managers.
Greece, Ireland, and Portugal are off-limits because their bonds no longer rate as investment-grade, which means that banks are not allowed to sell them to individual savers.
When the yield on German government bonds falls to 2%, which is negative in real terms, German savers must redouble their efforts to achieve a certain target for retirement income.
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