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He does not anticipate rising interest rates — which would hurt existing bond holders — for a couple of years.
"We've proven that the city has failed to comply with its existing bond covenants on absolutely everything we owe".
The Bank of England also voted to continue with its existing bond purchasing program of £275 billion ($422 billion).
"The county presented a proposal that provides for a restructure of the existing bond debt at lower, fixed interest rates over a longer term," Mr. Riley said.
It will gradually run down its €1.6bn of existing bond investments by opting not to reinvest when they mature, the company said.
If the United States government borrows less and engages in less fiscal stimulus, this could help prevent interest rates from rising in the United States and would preserve the value of China's existing bond holdings.
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Lower ratings can cut the value of existing bonds and raise future borrowing costs.
But the hope that it will has pushed up prices of the existing bonds.
We think we'll just hold onto the existing bonds,' " he remembered.
Salomon has an oversupply of the principal portions of existing bonds but a shortage of the interest-rate portion.
Only one small part of the vast underground garage -- the only part financed under the existing bonds -- is being built.
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