QUOTE(guy3288 @ Apr 29 2016, 11:26 PM)
Yes, this is ridiculous!!!
How can banks be allowed to default bond payment and still not declared bankrupt??
In future who wanna buy bank bonds, who is going to lend money to banks??
Why in the world Financial regulators adopt this lopsided policy?.
If banks with so many experts in them are doing losing business it should be punished -go close shop!
Why at the expense of investors who only provide capitals and have no say in how they run their business?
Thanks to you for starting this thread and havoc's explanation, we now know the risks and rewards of this type of bond. But there are many more non-savvy retail investors who might fall into this without knowing the greater risks for a small incremental rewards. I presume your RM will have a cut since she is pushing hard to sell you this bond??How can banks be allowed to default bond payment and still not declared bankrupt??
In future who wanna buy bank bonds, who is going to lend money to banks??
Why in the world Financial regulators adopt this lopsided policy?.
If banks with so many experts in them are doing losing business it should be punished -go close shop!
Why at the expense of investors who only provide capitals and have no say in how they run their business?