The World Bank last year wanted to be the first debt issuer to make the entire offer available online.
Under normal circumstances, investors do not have to be concerned about credit risk, when the debt issuer is a government enjoying a top rating by credit agencies like France, Germany, US, and Japan.
The Senate also rejected an amendment that would outright ban naked credit default swaps, which basically are a bet on the future creditworthiness of a company or debt issuer. (The House version of financial reform did ban naked credit default swaps).
Remember, when someone defaults on a loan, all debt of the issuer gets downgraded.
So, for example, a sukuk issuer does not sell a debt, as a traditional bond issuer would, but rather sells a portion of an asset, on which the buyer is then entitled to receive rent.
Third, the US Treasury is a sovereign issuer of currency and debt, and can raise taxes.
The drafters seemed to have forgotten that securities include debt as well as equity, and that debt is often issued outside the issuer's home country.
Italy will be the largest single issuer: it has two chunks of debt due in the last weeks of January and February.
" He said when an issuer wants to sell a lot of debt in one day, investors expect to be paid a slightly higher yield, but that "it would not be unusual for there to be some price tightening.
After the markets closed Monday, Fitch Ratings downgraded AIG's long-term and short-term issuer default rating, as well as its senior unsecured debt and commercial paper program ratings.
This would have the effect, principally on the U.S. as the issuer of two-thirds of world reserves, of removing the debt overhang which has made trade deficits, government overborrowing, and hot money bubbles the way of life.
Remember: A credit-card issuer wouldn't charge the lowest rates to customers who carry the most debt.
Keenan has set himself two guidelines: The issuer can't take its money out in a cash dividend or add debt senior to BlackRock's, without permission from the bondholders.
In other words, if an issuer does not have the cash for the next coupon payment, bondholders will receive more debt.
Additionally lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
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