Additionally lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
But the default will be the price of getting that deal done.
He pulls out a chart showing the price of credit default swaps on Glencore (a Swiss firm and the biggest oil trader not part of an oil company).
You should also weigh the importance of price volatility and default.
Ultimately, they pay the price through higher default rates.
As for default risk, bondholders will experience price declines similar to equities, but there is a big difference with most bonds.
In line with the cash share price tumble the Credit Default Swap on BP broke higher by 20 basis points 10 trade at 103bps over 3 month LIBOR.
In benchmarking that price point as the default value for nearly all books in the Kindle Store, Amazon was discounting to a loss, presumably to build adoption of the Kindle platform.
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Fixed at uneconomic rates, these price controls amount to a default on Argentina's contractual obligations to the utility companies, many of them foreign-owned.
The price of insuring Argentine bonds against default has spiked, but the country was already shut out of debt markets.
If AIG had been forced to sell its credit default swaps then, Sullivan said, the price would have been artificially low.
In other words, Mr da Silva must realise how enormous would be the economic and political price of letting Brazil slide into default.
Instead, investors should seek more timely measures of sovereign risk, preferably through price signals from competitive debt and credit default swap markets, and whenever those are unavailable, from more objective and transparent models.
In Italy and France, for example, the big rise in prices that creditors to their banks have to pay for default insurance has tracked a significant rise in the price that creditors to their respective governments pay for protection.
International default, however, is thought to come at a heavy price.
Against this tumultuous backdrop, Haarde vowed Tuesday that ordinary Icelanders would not pay the price for this spending spree and that his country will not default on its debt.
Future Droids may come at a low price if you agree to Google as the exclusive search bar and default browser search on the phone.
While far from perfect, there's a lot to like about Nokia Creative Studio -- the panorama capture alone is worth the price of admission (which is free, unlike the alternative) since it's missing from the default Lumia camera app.
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