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By paying a certain premium, an investor sacrificed some part of his expected return in exchange for being protected from default of the bond issuer.
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Investors who bought securities containing loans with small or no down payments were lulled into believing that they would be protected from losses associated with defaults if the loans were insured.
The funds put up at least five hundred million dollars each, and the government puts up at least a billion dollars more. Some of this money would come in the form of "non-recourse loans," meaning that the funds would be protected from bad consequences if they default.
Among the 127 banks, hedge funds and mutuals that hold the rest, some are protected from a bankruptcy filing by credit-default swaps, which provide insurance against a default, making bankruptcy preferable to a massive write-down on their investment.Mr Henderson, for one, seems to be preparing for bankruptcy.
It wanted to be repaid before the bond reached maturity, so as to be protected from loss if the bond went into default at maturity.
Investors have so far been protected from potential losses resulting from bank failures and government default, both in the bailout of Greece in the spring and in the package of financial measures for Ireland announced on Sunday.
She was protected from reprisal.
Consumers could be protected from this.
It is protected from enemy and hazard.
They must be protected from predatory prisoners.
I was protected from it".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com