Bond rating systems

Investors are found to bear this common apprehension that all bonds are identical. This idea however, is pretty far from the truth. Bond ratings came into existence and were developed gradually over a period of time with an objective to aid the investors realize the amount of risks involved with regard to the different kinds of bonds available in the market.

It is only those bonds that are issued by the federal government or agencies that bear the least amount of risks but, apart from them, every other variety of bonds does bear a certain amount of risks that the investor ought to be aware of before hand. This mechanism of bond rating allows the investor to comprehend this potential risk that exists by default. He can not only evaluate the various determining conditions of the bond, but  also effectively balance this default risk. This takes into account the interest payments that are paid to the investor on the bonds.

Investment in bonds is considered to be safe due to the fact that the investor receives his payment on interest expense prior to the payments to the stock-holders. There is a negligible chance of non-payment unless of course, the company decides to declare bankruptcy.

Although, this risk may mot be a magnanimous one, there might be companies that go default on their bonds. This entails that the said risk is not merely perceived, it is indeed real. In such a situation, the bond-holder or the investor does not receive his interest payment but, he might as well end up losing his entire investment on the bond.

Written by srini on September 16th, 2009 with no comments.
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The DOMA Repeal Bill offers equal protection to the same sex couples under the existing immigration laws

The Defense of Marriage Act (DOMA) passed in 1996, had the same sex couples who were lawfully married, subject to discrimination. There were 91 co-sponsors who took active initiative to introduce the Respect for Marriage Act, in the House of Representatives. The President of the Human Rights Campaign, Joe Solmonese stated in a press release that one of the vital protections with regard to the same-sex legally married couples under this Respect for Marriage Act, is that, they should be awarded “equal protection under U.S. immigration laws”. This bill can prove to be landmark legislation for American citizens as well as their non-American same-sex spouses.

You will find that under the current immigration laws, the same-sex bi-national couples are not allowed to enjoy the same immigration rights as that of the spouses of the American citizens or the lawful permanent residents of the country. In the whole of America, there is a growing support to bring about an end to this sort of discrimination. The Congress has already brought about the Uniting American Families Act (UAFA) and the Reuniting Families Act, which targets to end this discrimination and allow the same-sex partners to attain permanent resident status through the amendment of the Immigration and Nationality Act. The objective is to bring in the ‘permanent partners’ within the purview of these above mentioned Acts. Senator Schumer is drafting this comprehensive immigration legislation.

Written by srini on September 16th, 2009 with no comments.
Read more articles on Immigration News.