They can remain on the balance sheet with a footnote explaining the intent to hold to maturity.
The idea draws on a similar exemption for bonds that life insurers plan to hold to maturity, even though, unlike bonds, equities do not mature.
ECONOMIST: A new device to embellish the books of Japanese companies
Sergio Trigo Paz was having conversations with multiple investors that planned to hold debt to maturity, and were matching the income flow from the emerging market bonds that they were buying to specific liabilities.
The hope is that investors can be persuaded to hold the assets to maturity, which, for some, means until next December, and that they will all mature in good standing.
After combing through MBIA's books, Warburg Pincus' partners concluded that marking to market the mortgage bonds it insures produces some scary numbers but doesn't threaten a firm that plans to hold the liabilities to maturity.
They are often bought by investors, such as insurance companies, that hold them to maturity.
The Treasury could conceivably buy something above market value but below fair value and hold it to maturity.
Investors that hold TIPS to maturity receive income plus an adjustment to the principal for increases in the CPI.
FORBES: Portfolio Protection Just In Case Inflation Never Comes
Most Treasurys cannot be called in early, meaning that if you hold one to maturity you will get the yield you bargained for.
Many believe Treasurys are for wimps, widows and orphans who hold them to maturity and are satisfied with low returns as a trade-off for safety.
Meaning, you will be forced to hold until maturity or experience a capital loss.
However, this rate really does not matter if you hold the bond to maturity.
Securities firms argue that this need not matter as long as investors hold the bonds to maturity.
Alternatively they can hold the securities to maturity, thus erasing the loss.
However, in most emerging economies corporate bonds are concentrated in the hands of a few institutional investors that buy and hold these assets to maturity.
While most Italian households typically hold government paper to maturity, they could suffer hefty losses if bond prices continue to fall, as they have in recent months.
This is not a problem if you hold a bond to maturity (unless you recently bought a newly issued long-term bond), but it will adversely impact bond fund prices.
FORBES: Buffett's Right, Bonds May Fall Victim To Inflation But Hold Them For Now
Paul Miller of Friedman Billings Ramsey, an investment bank, says a government bad bank can pay more for assets than a private investor because its cost of funds is irrelevant, it needs no capital and can hold the assets to maturity.
It required banks to write down the value of assets (such as long-term bonds) to market value, even if the banks intended to hold them until maturity.
But people should be required to make a real assessment of what kind of capital is necessary to hold an asset that's atypical to its maturity, if that's what they're claiming.
The realized yield of a bond should be calculated if an investor plans to hold a bond only for a certain period of time, rather than to maturity.
If they simply allow the maturity dates of the treasuries they hold to naturally shorten, the 10-year Treasury could rise significantly.
Desmond Lachman, a fellow at the American Enterprise Institute in Washington has another, simpler, solution: Just require mortgage originators to be sufficiently capitalized and to hold at least a portion of the mortgage until maturity.
If not, remember that the bond you purchase should pay par at maturity, so if nothing changes with the company and you intend to hold the paper until it matures, you should be fine.
Accordingly, Soviet willingness or ability to redeem bonds at maturity could directly affect the economic well-being of those who hold such Soviet debt instruments.
应用推荐