A person owning a bond or bonds issued by a government or a public company.
- It sends all the wrong signals to the market and can quickly turn to a vicious downward spiral as lenders, bondholders, and equity investors take fright.
- Previously we discussed the event of a corporate liquidation where bondholders and preferred shareholders are paid first.
- This spectacular fall left lenders and bondholders with unpaid debts of some $2 billion.
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