Cryptocurrency Q&A
Why are perpetual bonds risky?
Why are perpetual bonds risky?
CrystalPulse
Sat Mar 01 2025
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6
answers
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I want to understand why perpetual bonds are considered risky. I know they offer infinite maturity with no fixed redemption date, but what makes them a risky investment choice compared to other types of bonds?
6 answers
SsamziegangSerenadeMelodyHarmonySoul
Mon Mar 03 2025
In the event that the issuer becomes insolvent, investors in perpetual bonds will cease to receive interest income from their investment.
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Riccardo
Mon Mar 03 2025
This exposure to credit risk is a unique characteristic of perpetual bonds, distinguishing them from other types of bonds.
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mia_rose_painter
Mon Mar 03 2025
The risk of non-payment of interest is heightened in perpetual bonds due to their indefinite maturity.
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Claudio
Mon Mar 03 2025
Investors in perpetual bonds must therefore be prepared to accept a higher degree of credit risk compared to holders of other bond types.
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Claudio
Mon Mar 03 2025
The credit risk associated with the issuer of a perpetual bond is a significant consideration for investors.
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