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In that quarter the gross value of bond issues around the world totalled $407 billion.
Higher interest rates can reduce the value of bond holdings and erode earnings growth if the demand for borrowing wanes.
Financial shares fell on concern that rising interest rates would reduce the value of bond holdings and crimp demand for mortgages and loans.
Bank stress tests should operate on a similar principle, scrutinizing whether a bank can remain airborne in the face of market turbulence, like a surge in bad loans or a plunge in the value of bond holdings.
Perth's property market had deflated and with the value of Bond Corporation, which had increased its revenue 12-fold and it's borrowings 20-fold in the three years between 1971 and 1974 only to close out the financial year $100m in debt.
Inflation may be positive in America, Britain and Germany, but in all three countries government-bond yields have plunged to lows exceeded in recent times only by levels during the 2008 panic.Since falling yields raise the value of bond principal, that has delivered bumper returns to investors.
Similar(37)
But inflation doesn't just erode the value of bonds; it also erodes the value of cash.
Strong growth is generally considered bad for bonds because it raises the risk of inflation, and high inflation lowers the value of bonds over time.
It has already conducted two buybacks, each of $1 billion face value of bonds, focusing its repurchases on older 30-year bonds that pay higher coupons to investors.
Investors typically take losses of one-third to one-half of the value of bonds when sovereign debts are restructured.
S&P argues that any exchange or restructuring that diminishes the value of bonds would trigger default.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com