In the 1970s an inflation-triggered rise in interest rates caused a crash in the value of bonds.
The rolling redemptions provide some protection against rising interest rates, which of course kill the market value of bonds.
That is, when yields rise the price or value of bonds declines, and in the other direction, when yields are falling, bond prices rise.
In October, the government put a ceiling on the total value of bonds and commercial paper which the top five chaebol could issue, thus cutting off Daewoo's access to capital and eventually precipitating its near-bankruptcy.
Sure, bonds have generated strong returns since then but that is partly because interest rates have been on a steady downward slope to zero, pushing up the value of bonds even as each new crop yields less.
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The question now is whether it's spiraled too much, and whether the passage of time will bring a different perspective, placing the value of Bonds and McGwire's accomplishments somewhere in between the levels of nine years ago and today.
The SEC said that when the value of those bonds began to decline in late 2007, they had "abandoned their obligation to accurately record the fair value of their bonds and instead began to price the bonds in a way that allowed them to achieve their goal of showing consistently profitable trading".
But many Japanese financial institutions, especially regional banks and credit cooperatives, would be unable to keep such large holdings of government bonds if the value of those bonds drops too far, Allen said.
But for your Uncle Al living in Boca, if he is paying 20% over the value of Treasury bonds at par today to get interest payments of just 1.6%, he is going to get next to nothing in real income after inflation, and he is going to watch the value of his bond plummet once interest rates start rising again, forecast to occur by 2014.
Sure Fed buying might initially boost treasury prices, but as the additional dollars created to buy the bonds work their way into the economy, rising consumer prices erode the present value of the bonds.
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Their scheme involved inflating the value of these bonds and hiding losses associated with them.
And we can place a price on it too: 15% of the nominal value of the bonds.
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If the insurers get derated (or worse still, go bust), the value of those bonds will fall.
The issuance of so inordinate an amount of public debt would crush the value of Japanese bonds.
And when rates on new issues increase, the value of existing bonds decreases.
When rates on new issues fall, the value of existing bonds naturally increase.
You not only collected your interest, the value of the bonds went up.
One analyst reckons that some managers are overstating the value of their bonds by ten percentage points or more.
As the market value of corporate bonds sinks, we can expect debt-heavy firms to be punished through declining share prices.
But Apollo bought too early, and the value of those bonds plummeted to as low as 40 cents on the dollar.
So the question now is when they will rise causing you to lose money as the value of your bonds declines.
The concern over the value of Italian bonds has many Eurozone bankers on edge, as they have large holdings in these bonds.
If they halt their purchases, the value of those bonds will slump.
Second, if interest rates go up, the value of your bonds will fall.
This has a direct impact, by increasing the financing costs of their trading operations and lowering the value of the bonds they hold.
If it staged a buyer's strike, causing the value of Treasury bonds and the dollar to tumble, China would be the biggest loser.
As market yields fall, the value of outstanding bonds will increase.
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The face value of the bonds affected was 16.5 million euros.
When applied to existing debt, a rating change can result in either a windfall or hit for an investor in the value of the bonds being held.
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