Bondholders have been bailing out of municipal bonds ("munis") as quickly as they can speed-dial their brokers. A modern-day Scrooge, with stacks of munis in his portfolio and the financial ability to hold them, might welcome the fewer new issues, saying "the better to drive up the ...
From an investment perspective, stocks are generally more profitable but riskier than bonds. Their prices can fall in the blink of an eye, forcing investors to sell their shares below their full value. In the worst-case scenario, they may end up losing everything they invested. On the positi...
The German law prescribes a representation rate of at least 50% so that a decision on a bond is legitimate. The management plans to offer the bondholders to convert the bonds into purchase rights for new stock and bonds, which will cut their claims to 55 % of the amount, the...
Ineffective negative pledge, change of control and disposal of asset clauses in bond documentation mean new owners can borrow on a secured basis, pushing bondholders lower down in a company's capital structure and allowing owners to sell valuable assets without bondholder consent. The position of ...
Under the terms of the bond indenture, any group representing 25% or more of the bondholders can demand immediate repayment of the bonds if the company misses an interest payment. Meeting R.D. Smith’s request would effectively force Care Enterprises into bankruptcy because the company lacks the...
Every year 1% of the pension fund is built up and employees pay a contribution of 4% of their salary, with the employer paying the balance of the contribution. If an employee leaves Alexandra and transfers the pension to another fund, Alexandra is liable for, or is refunded the difference ...
bonds bought before the SMP, though they will be compensated by their governments if they face losses.However, haircuts on bond holdings do not mean that the size of the losses to Euro Zone national Central banks/ECB will be equivalent to the % haircut, as Greek bonds would have been ...
bonds bought before the SMP, though they will be compensated by their governments if they face losses.However, haircuts on bond holdings do not mean that the size of the losses to Euro Zone national Central banks/ECB will be equivalent to the % haircut, as Greek bonds would have been ...