First the ESFS intends on funding the banks before it sells those, soon to be highly coveted AAA EU guaranteed bonds.
As signs of recovery continue to appear, and investors grow less jittery about emerging markets, more Asian governments may follow with non-guaranteed bonds of their own.
Peeters, who is the president of Belgium's football federation, also explained that senior Libyan financial officials have expressed their readiness to submit guaranteed bonds for the allocated money.
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Rohner claims that Augusta told him Medicare would cover the patients' bills, so it was as if the government guaranteed the bonds.
Many investors also want the eurozone to issue bonds guaranteed by every one of the 17-member nations - so-called eurobonds.
The EFSF is supposed to raise the money through selling AAA bonds guaranteed by the European Union (many of whose members are flat broke), then give the money to the Spanish government which in turn doles it out to the spendthrift banks.
Until now, Germany had been a key opponent to the creation of a large eurobond market allowing European Union member states to refinance their debt themselves directly via the issue of bonds guaranteed by the EU, or at least by the eurozone itself.
Conservative investors can fight against inflation by considering Treasury-Inflation Protected Securities, or TIPS. These federal government bonds are guaranteed to keep pace with the government -calculated Consumer Price Index.
The bonds would be guaranteed by all 17 countries in the single currency, including Germany.
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Some of the products peddled by fund managers, such as split-capital trusts, and now high-income bonds, which guaranteed income but not, alas, the return of the principal, have also been tainted by scandal.
The lack of that guaranteed repeat business is a worry for longer-term bonds, which can have maturities ranging far beyond a given product cycle.
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One way to encourage them along the road to the financial guillotine would be through debt exchanges whereby their devalued bonds would be swapped for claims on debt guaranteed by the EFSF.
Under the so-called 5-3-3-2 rule, applied by both the finance ministry and the health ministry, half the pension-fund investments had to be in assets (such as bonds) where return of the principal was guaranteed, not more than 30% in domestic equities, 30% in foreign securities and 20% in property.
If, instead, he had taken the dividends in cash, paid the taxes, and invested the rest in plain vanilla Series E U.S. Savings Bonds that were popular at the time which guaranteed a minimum annual interest of 4 percent, compounded semi-annually, tax-free the end result would have much different.
Cypriot Banks naively invested over the years in Greek Government Bonds, which before the global crisis, they were a guaranteed investment, so by that haircut, their investments were reduced catastrophically.
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Its employees are guaranteed an inflation-linked pension so it meets that promise by buying inflation-linked bonds.
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Because the capital markets believed, rightly as it turned out, that the bonds issued by Fannie and Freddie to raise money for their mortgage financing were effectively government guaranteed, the two organizations were able to raise huge sums at low interest rates to pump into these mortgages.
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It is likely but not guaranteed that Spain will need an aid package by spring 2013 and will ask the ECB to buy its bonds, but this would not necessarily signal the end of the euro, either.
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