To get the same yield, an investor would have to buy a lower-rated bond, such as a 15-year double-A-rated bond or a triple-B-rated bond maturing in eight years.
Many of her highly leveraged companies are severely troubled and as a result her once triple-AAA bond deals have been reduced to junk status.
FORBES: Reality Bites: Lynn Tilton's Diva Of Distressed Show Cancelled
Mr. Nixon said the fund is critical not just for the state to gain a triple-A bond rating, but to also be prepared for higher health-care costs in coming years and to maintain consistent program funding levels.
Say a municipality was refinancing a triple-A-rated bond an investor bought three years ago with a yield of 3.37%.
Meanwhile, Ackman was making another big bet, this time against bond insurer MBIA, whose triple A rating he questioned in a research report.
Around that same time Ackman was making another big bet, this time against bond insurer MBIA, whose triple A rating he questioned in a research report.
Many people now see it as a distinct possibility that several bond insurers will lose their triple-A ratings and go into run-off because of their massive exposures to troubled credit derivatives.
So Bond fans will be getting a triple play of Agent 007 with the new game, Blu-ray boxed set and big screen adventure.
FORBES: James Bond Movie Directors Celebrate 50 Years Of 007
Many have been mesmerized by some of the high-yielding REITs that invest in mortgage-backed securities where the yields have been double or triple that of the 30-year Treasury bond.
When the spread is rising, it is generally a negative for stocks and the precarious state of the 30-year T-bond yields was one of the triple alerts for stocks.
Washington and Wall Street have bristled at the thought of a bail-out for the bond insurers, though they have also been wary of leaving the municipal bond market exposed to the capital-constrained bond insurers, who face losing their triple-A credit ratings--those who haven't lost them already, that is.
The Fitch credit agency has taken away its triple-A rating, a veritable death knell for a bond insurer.
Mr Joshi says the four previous periods of triple strength since 1980 were all followed by falls in Treasury-bond prices.
The bond insurers have been fighting to keep their top-notch triple-A ratings.
What's really more likely to happen is that if these bond insurers get down-graded by the rating agencies from their triple-A rating, that would cause all the holders of the bonds to also have down-grades, which would mean yet more billions of write-offs, yet more losses, yet more problems for the stock market and yet more ripple effect on the rest of the economy.
The counterparty was the troubled bond insurer ACA Financial Guaranty, which Moody's cut dramatically from A to triple-C one day in December.
At maturity if the bond paid in full as planned then using extreme leverage the return potential quickly gets into triple digits.
FORBES: Jon Corzine: Criminal Or Just Plain Old-Fashioned Stupid?
应用推荐