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Debt instrument has been in spotlight since holders of Credit Suisse additional tier 1 bonds lost $17bn last year
...Japanese investors lead with holdings of $1.1tn while China is the next largest holder with $782bn — both of which include government and private investors....
...Debt investors have grown nervous about the prospects of unsecured bonds in French restructurings, after holders of this class of debt took near-total losses in a restructuring at food retailer Casino last...
...The creditor group is in contact with holders of more than half of the bond, they added....
...That’s well and good — of course, the holders of every bond want special treatment. But here’s the bit that got us and others interested....
...Ghana’s bid to resolve its sovereign debt default has hit a stumbling block after the IMF said a proposed restructuring deal with holders of $13bn of international bonds does not go far enough in reducing...
...Zambia has reached agreement with holders of its defaulted bonds that will wipe out about $700mn in debt and provide an additional $2.5bn in cash flow relief through reduced debt service payments, the country...
...Enter a suddenly hot convertible bond market. Super Micro recently sold $1.5bn of this hybrid debt, which includes the ability for holders to convert their notes into equity....
...]holders could then waive”....
...Regular corporate bonds promise the holder timely payment of coupons and principal, aka cash. PIKs? No such luck....
...Further reading— On Teflon bonds...
...Private sector holders swapped 17 per cent of their titles....
...Holders of the bond said they hope to get single-A credit returns with triple-A protection....
...If you buy a Fannie Mae 6 [per cent coupon], it’s as if you’re selling a 105 call for 6 points [the “call” is mortgage holders’ option to refinance if rates should fall]....
...How do things look for holders of other developed government bonds versus the grand sweep of history?...
...Goldman Sachs predicts the US will issue a record $1.4tn of coupon-bearing notes and bonds this year, on net. That’s up from $391bn last year. Is this reason to fret about fiscal folly?...
...We could either show a chart of the wild ride enjoyed by perpetual bond holders, or normalise the yield data to show what would’ve happened to a holder of hypothetical ten-year gilts....
...The need for a law, in part, is because an exception was carved into the law in 2004 to protect holders of claims larger than $500,000, which was to the benefit of investors intending to hold out from sovereign...
...debt holders....
...Holders lost a ton of money in both nominal and real terms. If you squint, you can make out that the TIPS market performed a tiny-teeny bit better than the nominal US Treasury market....
...All this has led to a situation where Western holders of Russian bonds are materially worse off than their Russian counterparts, while the borrowers had their debts in the hands of Western investors, in...
...Change-of-control clauses — allowing the holder to put the bond back to its issuer at par — have been a feature of the high yield market since before Michael Milken went to prison....
...Modern “capitalists” — aka bond holders — should take note. gillian.tett@ft.com...
...If all of the assets of the company are sold to people who aren’t “Permitted Holders” — ie billionaire Patrick Drahi and a handful of institutional investors/holdcos — and if a “person or group” ends up...
...Japan is the largest foreign holder of US government debt. Higher yields back home could tempt Japanese investors to retrench, reducing demand for US and European government debt in the process....
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