bond·​hold·​er | \ ˈbänd-ˌhōl-dər How to pronounce bondholder (audio) \

Definition of bondholder

: one that holds a government or corporation bond

Examples of bondholder in a Sentence

Recent Examples on the Web

The District’s chief financial officer, Jeffrey S. DeWitt, argued that using the funds would violate obligations to bondholders who invested in the convention center. USA TODAY, "Arthur Ashe, missing Marilyn, pacifier-eating pup: News from around our 50 states," 21 June 2019 Court approval would resolve one of the thorniest conflicts in Puerto Rico’s bankruptcy while clearing the way for resolutions with competing bondholder groups. Andrew Scurria, WSJ, "Puerto Rico’s $18 Billion Bond Restructuring Nears Completion," 19 Jan. 2019 On paper, the Cofina bonds were safe—sales-tax collections never fell short of what bondholders were owed. Andrew Scurria, WSJ, "Hedge Funds Bask in Puerto Rico Bond Deal," 9 Feb. 2019 Marble Ridge Capital LP, the bondholder, is seeking a 75% preferred equity stake in MyTheresa, according to the person. Soma Biswas, WSJ, "Neiman Marcus Bondholder Makes Counteroffer to Proposed Debt Deal," 11 Mar. 2019 Driven Away Puerto Rico stopped repaying bondholders in 2016 to free cash for other operating expenses. Michelle Kaske,, "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

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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Statistics for bondholder

Last Updated

28 Jun 2019

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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 How to pronounce bondholder (audio) \

Legal Definition of bondholder

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

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More from Merriam-Webster on bondholder

Rhyming Dictionary: Words that rhyme with bondholder

Spanish Central: Translation of bondholder

Nglish: Translation of bondholder for Spanish Speakers

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