Recent Examples of bondholder from the Web
Now Puerto Rico’s bondholders are growing increasingly certain that their returns could go even lower with Hurricane Maria in the mix.
IHeart’s bonds came under pressure on Thursday in reaction to the disclosure on the talks via an SEC filing, according to bondholders.
If property values remain high, bondholders have little to worry about.
Shareholders and junior bondholders took the losses, while taxpayers and depositors were spared.
That means the government will have to sell more bonds at the same time a huge bondholder is no longer a big buyer.
For one, there’s no city guarantee of debt for the project, meaning the city isn’t on the hook to pay off bondholders if the project goes under.
Some of the island’s bondholders have been lobbying Congress and the White House to replace the members of the oversight board, but legal changes would be tricky as well.
Puerto Rico—which already turned down a similar loan principle from its bondholders—might not have room to negotiate or outright reject any deal.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bondholder.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of bondholder
Financial Definition of BONDHOLDER
What It Is
A bondholder is a person who owns a bond issued by a borrower, typically a company or a government.
How It Works
A bond represents a loan agreement between an issuer and an investor, and the terms of the bond obligate the issuer to repay the borrowed amount (the principal) by a specific date. The investor (the bondholder) usually earns a specific amount of interest on a semiannual basis.
Bondholders can buy and sell their bonds on the bond market.
Why It Matters
Being a bondholder is much different that being a shareholder. For one thing, bondholders are lenders; shareholders are owners. Also, bondholders cannot vote and they are not entitled to dividends. But perhaps most important is the fact that bondholders rank senior to shareholders. This means that the bondholders are among the first in line to be repaid in the event the issuer liquidates. Shareholders might receive some proceeds from the liquidation after this point, if there is anything left. This seniority provides an extra level of security for bondholders, and this is one reason corporate bonds are generally considered "safer" investments than stock.
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