Therefore, the mortgage note was not actually signed over to the bond holder.

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Kramer notes these assets are most likely bonds and the underlying entity has to pay interest to the bond holder.

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In exchange for the lower rate, they grant the holder of the bond the right to convert the bond into the common stock of the company.

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The holder of a bond rated single-B gets scarcely 3.5 percentage points of premium to compensate for what are sure to be nasty losses of principal whenever a recession hits.

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