Reset Bonds

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Reset bonds

Bonds that allow the initial interest rates to be adjusted on specific dates in order that the bonds trade at the value they had when they were issued.

Reset Bond

A bond that, on designated days, increases its coupon rate to bring its market value back to its original value. For example, suppose a bond is issued with a price of $1,000 at a coupon of 5%. If the bond's price declines for any reason to $900 by the first designated day, the coupon rate is increased to 7% or whatever percentage will bring the price back up to $1,000. Reset bonds are structured this way to protect bondholders' investment, but they can create hardship for the issuer. The extra coupon rate has been known to cause an issuer to go into bankruptcy.

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Bono ajustable Reset Bond			RESET bonds have interest rates which are adjusted at fixed dates if the market value of the bond falls below a set threshold. Controlling financial distress costs in leveraged buyouts with ... by Opler, Tim C. / Financial Management And the investment community now is waiting to see what happens when reset bonds get reset and payment-in-kind bonds begin to require payments in cash. LBO frontiers in the 1990s: can accounting keep pace? LBO-type ... by Gorman, Jerry / Journal of Accountancy			Reservas em efetivo Reservas en efectivo Reservas excendentes Reservas libres reservation Reservation Price Reserve Reserve Account Reserve Currency Reserve Deficiency reserve for bad debt Reserve for Bad Debts Reserve for Contingencies reserve for credit and collections reserve for losses reserve fund reserve price Reserve Ratios Reserve Requirement Reserve Requirements reserved water rights doctrine Reservefonds van een delinquent reserves Reserves excedentaires Reset Bond Reset Bonds Reset Frequency Reset Margin reset note residence Residency Visa resident agent Resident Alien resident manager residential residential broker Residential Communities Initiative residential development residential mortgage Residential Mortgage Backed Securities Residential Mortgage-Backed Security residential property Residential Sales Council residential service contract residual Residual Assets Residual Claim Residual Cover Residual Dividend Approach Residual Income Residual method			Reservoir Management Coordination Authority Reservoir Management Team reservoir of infection reservoir of spermatozoa Reservoir Pressure Reservoir Pressure Reservoir Properties from Seismic Reservoir Quality Index reservoir rock Reservoir State Park Reservoir Surveillance Operations Reservoir to Tank Reservoir Work Group Reservoir-Assisted Stormwater Treatment Area Reservoir-Pollution Measures Reservoirs Reservoirs Reservoirs Reservoirs Reservoirs of Antibiotic Resistance network Reservor reset reset reset reset Reset (computing) Reset (computing) reset action reset bit Reset Bond Reset Bonds reset button reset button Reset Circuit reset condition Reset Consent reset cycle Reset Frequencies Reset frequency reset input Reset Internet Explorer Settings Reset Key Reset Margin Reset Margins Reset Mode Reset Mode reset note Reset of theft Reset Option Reset Options Reset Petri Nets reset pulse reset rate Reset Reference Bit Extended Reset Relief Valve Reset Sign Extension Mode Reset Status Register Key

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