Cover(ed) Girl.

In order to prevent sinners from getting caught in a debt trap, the fines could take the form of covered bonds collateralized with privatizable state assets.

The bond channel doesn t work when bond yields are already low and the credit channel doesn t work when banks hoard liquidity and velocity collapses.

So nothing stopped the banks from selling lemon bonds.

Indeed, the US stock market and many others have rebounded more than 100 since the lows of 2009 issuance of high yield junk bonds is back to its 2007 level and interest rates on such bonds are falling.

Because securitization meant that banks were not carrying the risk and earned fees for transactions, they no longer cared about the quality of their lending.

Pictures of coffins covered with flags went all over the papers.

The link between bond purchases and the money stock depends on the role of commercial banks excess reserves.

Later, the Basel accords whetted banks appetite for more government bonds by ruling them virtually risk free.

Even if the risk to the financial system was minimal, the impact on banks and bondholders was substantial.

Investment banks then earn fees for re packaging these securities in tranches of collateralized debt obligations, or CDO s (and sometimes into CDO s of CDO s).

First, the new bonds could be structured so that haircuts incurred by the banks count as tax losses, reducing the hit to their profits.

One consequence of the ECB s large scale long term refinancing operation (LTRO) has been that Italian banks are once again buying Italian government bonds, and Spanish banks are buying Spanish bonds.

Traditionally, the answer was banks in the securitized world, it remains a question.

In fact, the success of banks in issuing cocos suggests that investors do have the appetite for them.

In response, central banks should purchase government bonds for cash in as large a quantity as needed to push their prices up as high as possible.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

We have thousands of oiled penguins and thousands of willing, but completely inexperienced, volunteers.

Omid drew a cartoon on Iroon.com to show dusty Tehran.

Like banks, all these financial institutions are subject to liquidity or rollover risk the risk of going belly up if their creditors do not rollover their short term credit lines.

These debentures should be designed to create a strong incentive for bank managers and shareholders to issue equity rather than suffer conversion.

And restructuring weakens banks, which generally hold large portfolios of government bonds, thus making them less able to finance the economy.

Like banks, all these financial institutions are subject to liquidity or rollover risk the risk of going belly up if their creditors do not rollover their short term credit lines. But, unlike banks, they do not have the safety net implied by central banks role as lender of last resort.

Bank bonds could also be reduced and converted into equity, which would both avert a government takeover of banks and prevent socialization of bank losses from causing a sovereign debt crisis.

In the future, banks should consider basing bonus compensation on broader measures, such as earnings before any payments made to bondholders.

Bank regulators had long insisted that the safest possible financial instrument was a bond issued by a rich industrial country.

There is no other way to keep bond yields under control and banks functioning, and there is no ironclad guarantee that the reform programs needed to do the job will be approved.

In January 1927, when the government proposed to redeem these bonds, rumor spread that the banks holding these bonds would go bankrupt.

In Europe, particularly Germany, a mortgage backed security ( Pfandbrief ) is an ultra safe asset, as normally banks finance no more than 60 of a house s value.

Setting out for the Western Territory was expensive. Covered wagons were not cheap.

Prior to the crisis, banks had often been net sellers of foreign government bonds, but they significantly increased their purchases during 2008 2009.

Television spotlights illuminated its broken surface, scrawled with grafitti.

Commercial banks could hold them without setting aside any capital reserves, and the European Central Bank (ECB) accepted them on equal terms at its discount window.

LONDON The European Central Bank s recently announced policy of bond buying, what it calls outright monetary transactions (OMTs) marks a convergence of European central banks with their Anglo Saxon counterparts.

The distinction between bond purchases from the government and from the banks that bought them from the government is a phony one that gives rise to myriad possibilities for circumvention.

Greece, Ireland, and Portugal are off limits because their bonds no longer rate as investment grade, which means that banks are not allowed to sell them to individual savers.

Among other things, Basel III stipulates that banks do not have to set aside cash against their investments in government bonds with ratings of AA or higher.

One part of the financial markets not subject to the transparency and disclosure rules that apply to, say, banks and mutual funds, are hedge and private equity funds. Once relatively small, the five biggest private equity deals now involve more money than the annual budgets of Russia and India.

In the eurozone, banks are vulnerable to sovereign debt crises because they hold a lot of government bonds frequently issued by their country of origin.

The Battle of the Bonds

This rendered potentially insolvent commercial banks, whose balance sheets were loaded with such bonds, giving rise to Europe s twin sovereign debt and banking crisis.

The banks that had loaned them the money replaced the old debt with new bonds at par value, which averaged 50 of the old bonds, and the US government provided some sweeteners.

Sitting on the matted floor of his tent with an arm spread across a military provided cot, Mohanad takes a long, pensive drag off a cigarette.

You can walk over the uneroded, black lava flow covered with lava bubbles and tree trunk molds in the surface.

Bank officers may have walked away with hundreds of millions of dollars, but everyone else in our society shareholders, bondholders, taxpayers, homeowners, workers suffered.