bondholder

noun

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

Driven Away Puerto Rico stopped repaying bondholders in 2016 to free cash for other operating expenses. — Michelle Kaske, Bloomberg.com, "Puerto Rico Could Cut Spending to the Bone—and Still Never Recover," 15 Mar. 2018 The money that stayed with Cofina was more than enough to pay down senior bondholders but left junior creditors underwater. — Andrew Scurria, WSJ, "Hedge Funds Bask in Puerto Rico Bond Deal," 9 Feb. 2019 The company restructured its debt last year, closing an exchange offer with more than 80% of its bondholders. — Tom Corrigan, WSJ, "Brazil’s Constellation Group Files for Bankruptcy in the U.S.," 7 Dec. 2018 If approved, the settlement would pay off senior bondholders owed nearly $8 billion at 93 cents on the dollar. — Andrew Scurria, WSJ, "Puerto Rico’s $18 Billion Bond Restructuring Nears Completion," 19 Jan. 2019 Lenders and bondholders wanted the company to offer either equity or collateral in MyTheresa in exchange for pushing out the debt maturities, the people said. — Soma Biswas, WSJ, "Neiman Marcus Ends Restructuring Talks Without Deal," 29 Nov. 2018 Lavasa defaulted on dues payable to bondholders and has delayed repayment to other creditors including banks, the company said in a May 3 filing. — Anto Antony, Bloomberg.com, "Billionaire’s Folly Becomes Bankers’ Nightmare," 18 June 2018 The selloff has hit Asian dollar bondholders hardest this year, since the market is threatened not just by rising interest rates from the Fed but also by a rise in Chinese corporate defaults, which were previously anathema to Beijing. — Steven Russolillo, WSJ, "Global Selloff Tests Changed Credit Market," 22 Nov. 2018 But Chicago bondholders are also voicing cautious optimism that the project -- which will use electric vehicles to transport passengers through new underground tunnels -- is an economic win for the nation’s third-largest city. — Elizabeth Campbell, Bloomberg.com, "Hounded by Woes, Chicago Sees Musk's Train as Win for Its Economy," 14 June 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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5 Apr 2019

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The first known use of bondholder was in 1823

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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