defaulting on bonds

简明释义

债券清偿的拖欠

英英释义

例句

1.The company faced severe financial difficulties, leading to the risk of defaulting on bonds.

该公司面临严重的财务困难，导致有可能违约债券。

2.Governments can also face the risk of defaulting on bonds if they cannot manage their debt effectively.

如果政府无法有效管理其债务，也可能面临违约债券的风险。

3.Investors are worried about the possibility of defaulting on bonds due to the economic downturn.

由于经济下滑，投资者对违约债券的可能性感到担忧。

4.After months of poor sales, the firm announced it might be defaulting on bonds next quarter.

经过几个月的销售不佳，该公司宣布下个季度可能会违约债券。

5.The news of a potential defaulting on bonds sent shockwaves through the financial markets.

潜在的违约债券消息在金融市场引起了剧烈反响。

作文

In the world of finance, bonds are a popular investment vehicle that allows governments and corporations to raise capital. When an entity issues bonds, it promises to pay back the principal amount along with interest over a specified period. However, there are times when issuers fail to meet their obligations, leading to a situation known as defaulting on bonds. This term refers to the failure to make required payments on the bond's principal or interest, which can have significant implications for both the issuer and the investors involved.The consequences of defaulting on bonds can be severe. For the issuer, it can lead to a loss of credibility in the financial markets. Investors may become wary of lending money to an entity that has previously defaulted, resulting in higher borrowing costs in the future. Additionally, the issuer may face legal repercussions, including lawsuits from bondholders seeking to recover their investments. In some cases, a government or corporation may be forced to restructure its debt, which can further complicate its financial standing.For investors, defaulting on bonds represents a significant risk. When a bond defaults, investors may lose part or all of their investment, depending on the recovery rate of the specific bond. This uncertainty can lead to volatility in the bond market, affecting not only those who hold the defaulted bonds but also other investors who may reevaluate their portfolios in light of increased risk. The impact of a default can extend beyond individual investors, potentially affecting entire sectors or economies, especially if large entities default.To mitigate the risks associated with defaulting on bonds, investors often conduct thorough due diligence before purchasing bonds. This includes analyzing the credit rating of the issuer, understanding the economic environment, and assessing the issuer's financial health. Credit rating agencies play a crucial role in this process, providing ratings that reflect the likelihood of default. A higher credit rating indicates a lower risk of default, while a lower rating suggests a higher risk.Moreover, diversification is a key strategy used by investors to protect themselves against the risks of defaulting on bonds. By holding a variety of bonds from different issuers, industries, and geographic regions, investors can reduce the impact of a single default on their overall portfolio. This approach helps to spread the risk and can provide more stable returns over time.In conclusion, defaulting on bonds is a critical concept in the realm of finance that carries significant implications for both issuers and investors. Understanding the risks associated with bond investments and implementing strategies to mitigate these risks is essential for anyone looking to participate in the bond market. As the saying goes, knowledge is power, and being informed about the potential for default can help investors make better decisions and safeguard their financial futures.

在金融世界中，债券是一种流行的投资工具，使政府和公司能够筹集资金。当一个实体发行债券时，它承诺在指定的时间内偿还本金及利息。然而，有时发行者未能履行其义务，导致所谓的违约债券的情况。这个术语指的是未能按要求支付债券的本金或利息，这可能对发行者和投资者产生重大影响。违约债券的后果可能是严重的。对于发行者来说，这可能导致在金融市场上失去信誉。投资者可能会对借款给之前违约的实体感到谨慎，导致未来借款成本上升。此外，发行者可能面临法律后果，包括来自债权人的诉讼，寻求追回他们的投资。在某些情况下，政府或公司可能被迫重组其债务，这可能进一步使其财务状况复杂化。对于投资者来说，违约债券代表着重大风险。当债券违约时，投资者可能会失去部分或全部投资，这取决于特定债券的回收率。这种不确定性可能导致债券市场的波动，影响不仅持有违约债券的投资者，还可能影响其他投资者，他们可能会重新评估其投资组合，以应对增加的风险。违约的影响可能超出个别投资者，可能影响整个行业或经济，特别是如果大型实体违约。为了降低与违约债券相关的风险，投资者通常在购买债券之前进行彻底的尽职调查。这包括分析发行者的信用评级，了解经济环境，并评估发行者的财务健康状况。信用评级机构在这个过程中发挥着至关重要的作用，提供反映违约可能性的评级。较高的信用评级表示违约风险较低，而较低的评级则表明风险较高。此外，多样化是投资者用来保护自己免受违约债券风险的关键策略。通过持有来自不同发行者、行业和地理区域的各种债券，投资者可以减少单一违约对其整体投资组合的影响。这种方法有助于分散风险，并可以在一定时间内提供更稳定的回报。总之，违约债券是金融领域中的一个关键概念，对发行者和投资者都具有重大影响。理解与债券投资相关的风险并实施策略以降低这些风险，对于任何希望参与债券市场的人来说都是至关重要的。正如谚语所说，知识就是力量，了解违约的潜在风险可以帮助投资者做出更好的决策，保护他们的财务未来。