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Bondholders

All articles tagged with #bondholders

business22 days ago

China Vanke's Bondholders Approve Grace Period Extension Amid Market Reconfiguration

China Vanke's bondholders approved a plan to extend the grace period for a 2 billion yuan bond to January 27, narrowly avoiding default, but rejected a proposal to delay repayment by a year. The company is seeking to renegotiate terms amid ongoing debt concerns in China's property sector, which has been severely impacted since the Evergrande crisis. The outcome of these negotiations could influence Vanke's future debt management and market perception.

via Reuters|
#bondholders#business#debt-crisis
business1 year ago

DirecTV Ends Dish Merger Plans After Bondholder Rejection

DirecTV has abandoned its acquisition of Dish Network's DBS unit after bondholders rejected a crucial debt-exchange proposal. The merger, which aimed to create the largest U.S. pay-TV provider, was terminated to protect DirecTV's financial stability. EchoStar's stock fell significantly following the bondholders' decision, highlighting the financial challenges faced by both companies amid the decline of traditional pay-TV services.

via Deadline|
#bondholders#business#directv
finance1 year ago

"Assessing Investor Sentiment Amid New York Community Bank's Challenges"

Despite New York Community Bank's stock plummeting and bond credit rating being downgraded to junk status, bondholders seem unconcerned and view the bank's issues as isolated, as indicated by the stability of other regional-bank bonds and net buying over the past two weeks. The bank's troubles include a surprise quarterly loss, commercial real-estate loan issues, and the departure of key executives. While NYCB's stock has fallen almost 60% this year, its bonds are holding up, suggesting that the bond market does not anticipate contagion from the bank's problems to other regional banks.

via MarketWatch|
#bondholders#finance#financial-stability
finance2 years ago

Ethiopia's Bond Default Looms as "Loss Reinstatement" Provision Floated

Ethiopia's government is seeking to negotiate a rework of its $1 billion Eurobond and has proposed a "loss reinstatement" provision for bondholders in case of future defaults. The country is facing default after failing to pay a $33 million coupon on its Eurobond, which has a 14-day grace period. The proposal includes addressing the concerns of bondholders who sought such a provision, but it may not meet their exact expectations. Ethiopia's economy is struggling with inflation, a hard-currency shortage, and growing external debt repayments. The government emphasized the need for debt relief to satisfy official creditors, including China, and avoid issues with other creditors. Ethiopia had requested debt relief under the G20's Common Framework and agreed to a debt service suspension with official creditors. Credit rating agency Fitch downgraded Ethiopia to "C" and warned of further downgrades if the coupon payment is not made.

via Reuters|
#bondholders#debt-restructuring#default
economy2 years ago

Ethiopia's Looming Default: Africa's Next Debt Defaulter

Ethiopia is scheduled to hold a call with its international bondholders on Thursday as it faces the possibility of defaulting on its $33 million bond coupon payment. Talks between the finance ministry and bondholders broke down last week, with disagreements over extending the maturity and spreading out repayments of its $1 billion international bond. Non-payment of the bond coupon would put Ethiopia on track to default after the grace period expires. The country, which requested a debt overhaul under the G20 Common Framework, is struggling to pay its debts due to the combined impact of the COVID-19 pandemic and a civil war. Ethiopia is also seeking a loan from the International Monetary Fund.

via Reuters|
#bondholders#debt#default
finance2 years ago

Rising Auto Loan Rates: Should Buyers and Investors Be Concerned?

Car buyers in the US are being forced to take out car loans with interest rates ranging from 17% to 22%, due to the need for transportation and the country's credit rating system. The high borrowing costs increase the risk of late payments, defaults, and car repossessions. However, investors in the subprime auto sector have not been deterred, with nearly $30 billion of new bond deals already cleared this year. The resilience of the economy, despite the Federal Reserve's efforts to combat inflation, has kept borrowers making their payments and bondholders satisfied.

via Jalopnik|
#bondholders#car-loans#economy
finance2 years ago

Metro Bank Secures Capital and New Investor Deal to Stabilize Finances

Metro Bank, a British bank facing multiple setbacks in recent years, has secured a £325 million capital raise and a £600 million debt refinancing. Colombian billionaire Jaime Gilinski, the bank's largest investor, will take majority shareholder control. Bondholders will face a hit and switch to higher interest-paying bonds. The bank aims to strengthen its balance sheet after accounting errors, leadership departures, and delayed regulatory approval. The capital raise includes new equity and bail-in debt issuance. The deal also involves a restructuring of debts and discussions regarding the sale of residential mortgages.

via Reuters.com|
#bondholders#capital-raise#debt-refinancing
business2 years ago

Carvana's Debt Restructuring Deal Boosts Shares and Reduces Debt by $1.2 Billion

Carvana, the online used-car retailer, has reached a debt restructuring agreement with most of its bondholders to lower interest payments and improve its financial position. The company, which experienced rapid growth during the pandemic, struggled with falling used car prices and rising interest rates. Under the agreement, creditors will receive new secured notes, with interest paid in kind for the next two years. Carvana also reported a second-quarter loss of $105 million, an improvement from the previous year. The debt restructuring covers over 90% of Carvana's $5.7 billion in unsecured notes, with the remaining creditors offered the opportunity to join the deal.

via The New York Times|
#bondholders#business#carvana
finance2 years ago

Credit Suisse Investors Sue Swiss Authorities Over Bond Write-Down

Credit Suisse bondholders, holding about $5 billion of the bank's canceled debt, have filed legal action against Switzerland's financial regulator, arguing that it violated Swiss law when it wrote down around $17 billion of bank bonds as part of UBS's rescue of the troubled bank last month. The bondholders are alleging that the total write-down was disproportionately punitive to them and violated their property rights.

via The Wall Street Journal|
#bondholders#credit-suisse#finance
finance2 years ago

Debt ceiling concerns spark market anxiety and caution for investors.

Investors are demanding historically high yields for US Treasury notes that mature in July, which by some estimates is when the United States will default on its debt, absent any legislative action. Yields for three-month Treasury notes closed at 5.1% Thursday, exceeding yields for longer-term Treasury notes. Investors’ anxieties are also evident in spreads on US five-year credit default swaps, which have widened to 50 basis points, according to S&P Global Market Intelligence data. If lawmakers don’t raise the nation’s borrowing limit by June, the federal government runs the risk of defaulting on its debt obligations, which would be catastrophic for the economy and put millions of jobs in jeopardy.

via CNN|
#bondholders#credit-default-swaps#finance
finance2 years ago

Zambia's Debt Woes Continue Despite IMF Efforts.

Zambia's finance minister, Situmbeko Musokotwane, has said that the country is being "punished" for not completing its debt restructuring, which is not its fault. The country's two main creditors, China and international bondholders, both want a resolution. The IMF has said that the next payout to Zambia from a $1.3 billion rescue loan is contingent on the country's bilateral creditors reaching a debt restructuring agreement. Zambia's external debt was $18.6 billion at the end of 2022, of which about $5.7 billion was owed to Chinese creditors and $3.5 billion to bondholders.

via Reuters|
#bondholders#china#debt-restructuring
finance2 years ago

Swiss Regulator Defends Controversial Writedown of Credit Suisse Bonds Amid Takeover Talks.

Switzerland's financial market regulator, FINMA, has defended its decision to impose losses on some of Credit Suisse's bondholders, saying the decision was legally sound. As part of the multi-billion franc rescue of Credit Suisse, the regulator said 16 billion Swiss francs ($17.49 billion) of the lender's Additional Tier 1 debt would be written down to zero, while shareholders received some compensation. The decision prioritised shareholders over AT1 bondholders, causing a sharp fall in prices on Monday. Some Credit Suisse AT1 bondholders are seeking legal advice.

via Reuters|
#at1-bonds#bondholders#credit-suisse
finance2 years ago

"The Fed's Controversial Role in Wealth Transfer and Bank Failures"

The burden on US taxpayers from the national debt has declined dramatically over the past three years, despite public debt increasing by roughly $5tn over the same period. The market value of US Treasury securities has gone from a high of 108% of the economy to its current value of 85%, putting its value close to the prepandemic level. However, this windfall gain going to taxpayers has come largely at the expense of bondholders, including banks that have taken big losses on their bond investments, leading to increased financial stress.

via Barron's|
#bondholders#finance#financial-stability