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

With MBSs suddenly worth a fraction of their previous value, bondholders wanted to collect on their CDSs from AIG, which sent the company under. Jeff Andrews, Curbed, "10 years after the financial crisis, is the housing market still at risk?," 29 Aug. 2018 Separately, perpetual bondholders are being offered a few cents on the dollar. Fortune, "Noble Group Warns Losses May Near $5 Billion as It Pursues a Deal," 18 Feb. 2018 Union employees worry the strategy will cost them their jobs, while bondholders argue they must be compensated as assets are spun off. Andrew Scurria, WSJ, "Puerto Rico Utility Directors Resign, Alleging Political Interference," 12 July 2018 As same-store sales have fallen, PetSmart's debt has lost value, the Journal said, meaning PetSmart's bondholders could take action to recoup some of their investment. Rob Wile, miamiherald, "To shield it from investors' bite, PetSmart is spinning off part of," 7 June 2018 In the United States, for example, bondholders can probably expect strong long-term growth in gross domestic product, which has risen 3.2 percent a year in real dollars, or 6.1 percent in nominal dollars, since 1929. Robert J. Shiller, New York Times, "The Next New Thing in Finance — Bonds Linked Directly to the Economy," 11 May 2018 The managers of the crisis did all these different things, with wildly differing outcomes for firms, employees, executives, shareholders, bondholders, and taxpayers. San Antonio Express-News, "When Lehman failed," 29 June 2018 That pension deficit -- more than four times larger that its debt to general-obligation bondholders -- is adding hundreds of millions of dollars in costs to Illinois's budget each year as the government plows more money in to catch up. Elizabeth Campbell,, "Every person in Illinois owes $11,000 for pensions, with no fix in sight," 9 May 2018 The lawsuit may be another significant hurdle for the restructuring process, which needs approval from bondholders as well as shareholders. Andrea Tan,, "Noble Group Hit by Lawsuit From Top Holder," 20 Mar. 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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First Known Use of bondholder

1823, in the meaning defined above

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Last Updated

15 Nov 2018

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The first known use of bondholder was in 1823

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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


bond·​hold·​er | \ˈbänd-ˌhōl-dər \

Legal Definition of bondholder 

: a person or business entity that holds a government or corporation bond — compare stockholder

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to clear from alleged fault or guilt

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