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The price of bonds issued by the companies surged, meanwhile, as some investors indicated that any effort by the Treasury Department to help the companies would benefit bondholders.
United States bond prices, however, plummeted after rising sharply in the last week on the prospect that Asia's economic slowdown would benefit bondholders by dragging down commodity prices and helping stave off inflationary pressure.
Reports Monday said Dubai may restructure its debt, which could benefit bondholders, while markets took some reassurance form the fact that little of Dubai World's debt appears to be held by American institutions.
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Shareholders inevitably want to know that they are not throwing cash endlessly into a hole for the benefit of bondholders.
Quantitative easing, as practised by the Bank of England and the US Federal Reserve, merely flooded the financial sector with money to the benefit of bondholders.
If the chapter 9 goes ahead, pensioners and city workers face deep cuts in their benefits and bondholders will see the value of their investments slashed.
We argue that such provisions insulate corporate directors from the discipline from potential litigation, and allow them to pursue their own interests by adopting low-risk, self-serving operating strategies, which coincidentally redound to the benefit of corporate bondholders.
In the prepared statement, Keating said the bankruptcy petition was "the only course of action that will maximize the value of Phoenix-based American Continental for the benefit of our bondholders and shareholders". American Continental has been trying unsuccessfully to sell Lincoln since mid-1988, buthreeee deals already have fallen through.
Indeed, says the IMF, bondholders should benefit from making defaults less costly to work out, because the value of bonds would fall by less when defaults happen.
But these traders drove down rates, benefiting consumers, companies and bondholders.
With this Environmental Impact Bond if more environmental benefits are created, the bondholders get MORE money, not less.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com