Jump to content

What happens with defaulted bonds in your portfolio?


adventurer

Recommended Posts

Hello,

 

does anyone have a clue what happens with defaulted bonds in your portfolio? Few decades back one could buy bonds physically so no one could actually take them away from you once they were worthless. But what happens when you bought them electronically into your portfolio and they default? Will the broker simply remove them?

 

If yes, what happens with your claims in case the bonds are being revalued by the original issuer?

 

Thanks for reading!

Link to comment
Share on other sites

Broker does not remove them. You still have them in your portfolio with zero or whatever price broker puts there. Then you go through BK and either get something or not. It may even happen that you get X (new shares, new bonds), sell them and then later get more because of some additional settlement or whatever. It's all electronically tracked.

Link to comment
Share on other sites

Depends on the bond, the broker, your country, bond country (if different), your account size, etc.

 

My guess is that you won't be able to. But it's a WAG without additional info.

The best is to ask your broker rather than asking here. They should give you definitive answer.  8)

 

Good luck.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...