时间:2019-01-30 作者:英语课 分类:健康与经济


英语课

ECONOMICS REPORT - Lower Bond Prices Can Mean a Higher Return, but Also Risk
By Mario Ritter


Broadcast: Friday, May 20, 2005


I'm Gwen Outen with the VOA Special English Economics Report.


Governments and big companies often need to borrow more money than a single bank can offer. So they depend, instead, on credit markets. Sales of bonds or similar securities help finance governments and businesses, while investors 2 earn interest.


Bonds are loans. They must be repaid at the end of an established period, when the bond reaches maturity 3. During that period, the bond seller, called the issuer, must make interest payments to the bondholders.


The return on investment is called the yield. A one thousand dollar bond with a yield of five percent would pay interest of fifty dollars per year.


Some bonds are considered free of most worry for investors. United States Treasury 4 bonds, for example, are supported by "the full faith and credit" of the government.


But, in credit markets, how does an investor 1 know if a company can pay its debts? Credit rating agencies help. These companies advise investors how likely they are to receive the principal with interest. The principal is the amount of the bond at maturity.


Such advice helps markets to set the price of credit. We talked last week about credit rating agencies. The two biggest in America are Standard and Poor's and Moody's Investors Service. We described how they recently lowered the credit rating of General Motors and Ford 5 Motor Company.


A change in the credit rating of a bond issuer can affect the price of its bonds. Standard and Poor's gave G.M. a rating of double-B and Ford a rating of double-B-plus. Those ratings are known as junk status, or below investment grade. The lower the rating for a company, the less secure its debt is considered for investors.


Credit markets reacted; the price of G.M. and Ford bonds fell. This week, the price for a G.M. bond maturing in two thousand thirty-three was a little over seven hundred ten dollars. Bonds are usually sold in the amount of one thousand dollars. So buyers who paid full price would get back only about three-fourths of the principal if they sold that bond now.


But, as bond prices fall, the yield increases. This is because the interest stays the same -- so long as the bond issuer continues to pay. Risky 6 bonds appeal to some investors because of the lower cost and higher yield. The risk, however, is that the investors could lose their money.


This VOA Special English Economics Report was written by Mario Ritter.  I'm Gwen Outen.



n.投资者,投资人
  • My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
  • The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。
n.投资者,出资者( investor的名词复数 )
  • a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
  • a cash bonanza for investors 投资者的赚钱机会
n.成熟;完成;(支票、债券等)到期
  • These plants ought to reach maturity after five years.这些植物五年后就该长成了。
  • This is the period at which the body attains maturity.这是身体发育成熟的时期。
n.宝库;国库,金库;文库
  • The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
  • This book is a treasury of useful information.这本书是有价值的信息宝库。
n.浅滩,水浅可涉处;v.涉水,涉过
  • They were guarding the bridge,so we forded the river.他们驻守在那座桥上,所以我们只能涉水过河。
  • If you decide to ford a stream,be extremely careful.如果已决定要涉过小溪,必须极度小心。
adj.有风险的,冒险的
  • It may be risky but we will chance it anyhow.这可能有危险,但我们无论如何要冒一冒险。
  • He is well aware how risky this investment is.他心里对这项投资的风险十分清楚。
学英语单词
A.P.C. (automatic power control)
actinomucor repens
ad hoc on-demand distance vector
ammonia ash
angiulo
anomalous line condition received
autotronic system
AVRCP
Badenheim
badger dog
balmifying
beck's hydrometer
Buckley ga(u)ge
commutation of penalty
comparative feeding experiment
compositive criteria
contracted curvature tensor
croson
curator-in-charge
cyclophosphamide(CP)
deleterious substances
design transition temperature
diluent agent
distelfinks
doltons
dry blast cleaning
duodena
empurple
entertainments tax
equivalent multiply rate
Euro-farmer
exit phase
extra bright
fulminants
grip strength
gyrostabilizers
hallettsville
hamsin
hemorrhagic white eye
heteropatriarchy
high annealing
hoarsened
human factors evaluation
inductive loop detector
krashen
Lagrange-Hamilton theory
legal situation
licuala spinosa
long-period test
Loose Credit
lyncury
machinery repairman
macrophthalmus abbreviatus
magnetic amplifier type magnetic core circuit
metritic
Mount Juliet
nagal
near drowning
Negri Sembilan
oblique grooving iron
orthogonal orthomorphism
overconnected
patinoes
pennsylvanias
Pinkertonian
planty
pnictides
Politzer's plug
polyynic
preferential direction
regulation of water intake
responsible accident
rhacomitrium cucullatum broth
rhinolaryngological
roes
Roncal, V.de
Schneider Trophy
sclerotium oryzae
seeder unit
seropneumothorax
service completion time
silden
sour mushroom
sputum tubes
stimulation-escape
supress
synchronous optical transmission
taarof
taylers
telescopic belt conveyor
tend on/upon
tenthredo formosana
tetramerous flower
thiocarbazides
track start
transmarginal inhibition
triangular oscillation blade
tubular boiler
verminous abscess
vestas
wallet-size
within-participants design