Recent Examples of bondholder from the Web
The bankrupt territory’s recovery stands to be long and expensive, with serious implications not just for Puerto Rico’s residents but also its bondholders, U.S. taxpayers and perhaps even Trump’s political prospects.
Its bondholders were dismayed in the days before the hurricane when Prepa’s executive director, Ricardo Ramos, went on television and said that some parts of the island could be without power for as long as four months.
Moreover, bondholders from outside the United States would hardly be amenable to a settlement in which the cost of a haircut falls entirely on them, while American creditors are made whole.
The state has injected 3.9 billion euros of cash into the bank, while an additional 1.5 billion euros will be used to buy shares assigned to retail bondholders involved in the burden sharing.
While Venezuela’s finances have been teetering ever since oil fell below $100 a barrel three years ago, President Nicolas Maduro and his late predecessor, Hugo Chavez, have always made sure foreign bondholders got paid.
More than 97% of its secured bank lenders, including DNB, Danske Bank and Nordea, supported the deal, as did approximately 40% of bondholders and a consortium of investors led by Fredriksen's Hemen Holding.
Economists say that even if bondholders were spared the financial fallout, failing to make good on other payments could lead to a widespread loss of confidence.
If property values remain high, bondholders have little to worry about.
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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