Search results
Results from the WOW.Com Content Network
The distressed securities investment strategy exploits the fact many investors are unable to hold securities that are below investment grade. [1]Some investors have deliberately used distressed debt as an alternative investment, where they buy the debt at a deep discount and aim to realize a high return if the company or country does not go bankrupt or experience defaults.
A bond fund or debt fund is a fund that invests in bonds, or other debt securities. [1] Bond funds can be contrasted with stock funds and money funds.Bond funds typically pay periodic dividends that include interest payments on the fund's underlying securities plus periodic realized capital appreciation.
In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds in order to compensate for the increased risk.
Junk bonds are a kind of bond or debt investment that is rated below investment grade. The junk bond rating means that there is a greater risk that the issuer will default on the debt relative to ...
Debt is an obligation that requires one party, the debtor, to pay money borrowed or otherwise withheld from another party, ... capital investments, constructions, own ...
The original creditors then wrote down their positions and sold the debt into the secondary market, which is a market consisting of banks and investment funds focused on buying at discounts to achieve above market returns on their investment. In this process, much debt was repurchased and converted into local currency by the sovereign country ...
In finance, a bond is a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time. [1])
Doubt in the typically reliable U.S. currency could tank the markets, hurting 401(k)s and other investments (The S&P 500 lost 17% in the months surrounding the 2011 debt ceiling standoff.)