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This separation of the revenue bond obligation from a municipality's direct and general bond obligations allows the municipality to circumvent legislated debt limits.
The bond obligation would have a present value of $425,000 in its accounts but the pension liability, with the same cashflows, would be valued at just $320,000.Private-sector companies are no longer allowed to use assumed returns when calculating their pension-fund liabilities on their balance-sheets.
ratings as of June 30, 2006, to the risk of default five years later (on June 30 , 2011 as measured by the prices of credit default swaps, financial instruments that pay an investor if there is a default on a bond obligation.
The Cambridge bond obligation exceeds $300 million.
The exception that tests the rule is the collateralized bond obligation (CBO).
About a dozen buyout shops have created this type of bond obligation.
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That came just days after it defaulted on some of its bond obligations.
Well, there's an alternative: collateralized bond obligations.
Collateralized bond obligations backed by a diversified pool of high-yield bonds are even better.
These bond obligations invest in all types of high-yield debt to maximize current income.
Some countries, despite their economic woes, have an excellent track record of meeting their bond obligations.
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