bondholder

bond·hold·er | \ ˈbänd-ˌhōl-dər

Definition of bondholder

: one that holds a government or corporation bond

Examples of bondholder in a Sentence

Recent Examples on the Web But a large bondholder, Fidelity Investments, rejected the deal and the province ultimately opted to pay the amount in full, people familiar with the matter said. — Matt Wirz, WSJ, "Argentine Bonds Climb After Fidelity Stares Down Province of Buenos Aires," 5 Feb. 2020 The defendants tried to sell those assets and divert proceeds to Platinum, instead of to bondholders, who should have been the first to receive the money, authorities said. — Jordan Blum, Houston Chronicle, "Former Black Elk CEO gets deal to dismiss fraud scheme charges," 28 Jan. 2020 Geothermal could be the answer Bloomberg China wants activists to stay out of its war on pollution Wall Street Journal PG&E strikes deal with bondholders as governor blasts bankruptcy strategy Calendar THURSDAY | JAN. — Josh Siegel, Washington Examiner, "Daily on Energy: Wind and solar industries plan on taking market share regardless of federal policy," 23 Jan. 2020 The deal’s terms include giving the bondholders new debt that is cheaper for PG&E, among other provisions. — J.d. Morris, SFChronicle.com, "PG&E: Judge approves big bankruptcy deal with bondholders," 4 Feb. 2020 This week, Norwegian asked bondholders for a bit of leniency in paying back two of its biggest bonds to November, 2021, and February, 2022, respectively. — Bernhard Warner, Fortune, "Norwegian Air Pleads With Creditors for a Lifeline as Boeing 737 MAX Fallout Deepens," 4 Sep. 2019 The proposal, which would give bondholders a share in government revenues from future natural-gas exports, is a counteroffer to a plan Mozambique Finance Minister Adriano Maleiane set out in March and that investors rejected. — Matt Wirz, WSJ, "Investors Seek Slice of Future Energy Revenues in Mozambique Bond Restructuring," 3 Aug. 2018 Meanwhile, attempts to compete on low-cost long haul flights have also proved challenging: Norwegian Air’s record third-quarter profits came after aggressive cuts, coupled with a two-year repayment delay from bondholders. — Natasha Frost, Quartz, "European airlines are confronting the same grim reality their US counterparts faced decades ago," 6 Nov. 2019 Creditors of Anbang, including banks and bondholders of its life unit, don’t necessarily have to panic for now as the government said its external liabilities won’t be affected by the takeover. — Bloomberg.com, "Trump: Will Be Putting in a Lot More Circuit Judges," 23 Feb. 2018

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.

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Last Updated

22 Feb 2020

Cite this Entry

“Bondholder.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bondholder. Accessed 23 Feb. 2020.

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More Definitions for bondholder

bondholder

noun

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.

Source: Investing Answers

bondholder

noun

bond·hold·er | \ ˈbänd-ˌhōl-dər