Spreads on both investment-grade credit-default swaps (insurance against bond default) and on high-yield indices have increased sharply.
To let Greece default - chaotically or otherwise - but use taxpayers' money to bailout the affected north-European banks.
Perhaps the more interesting part of the announcement, though, is that Motorola is adding the capability to choose a non-default (read: non-Google) search provider on these phones.
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If Greece were to default - or seen to be in default - it would mean massive losses for European banks that hold Greek debt, including the European Central Bank.
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Charlie Ledley and Jamie Mai, two investors with a penchant for finding mispriced options, reckoned that credit-default swaps on mortgage-backed bonds were just too cheap a trade to pass up.
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When adapted to all-wheel drive, all three companies have kept that rear-drive feel as the default--only when the rear wheels slip does power get sent forward to the front tires.
The birth of the credit-default swap has been well-chronicled.
Long-term default is all-but-impossible, as those issuing loans for higher education have the right to garnish everything from tax refunds to Social Security checks in their quest to be paid back.
The story here is also not awe-inspiring, but since spiking in the aftermath of the horrific 1998-99 debt default and recession-within-depression, there has been a steady downward tick in the crude death rate.
Graduates from institutions within the Association of American universities, the 62 leading North American research universities, have far lower student-debt burdens and loan-default rates than graduates of the for-profit institutions that supposedly will end college as we know it.
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Other government policies that have distorted financial markets, thereby undermining the EMH, include shielding credit-rating agencies from lawsuits, government-sanctioned fair-value accounting rules, enforcing credit-default swaps where there is no insurable interest, mispriced deposit insurance, government-sponsored enterprises, and the over-promotion of home ownership.
The decision by the Fed to offer emergency liquidity to Bear Stearns and to facilitate its acquisition by JPMorgan Chase had less to do with the size of Bear's balance-sheet than with its central role in markets for credit-default and interest-rate swaps.
By separating a portfolio of derivatives into different tranches, banks can create virtually default-proof securities for conservative investors--if somebody else is willing to buy riskier "equity" tranches whose value vaporizes when as few as one or two of the underlying bonds default.
Speaking of which, the Mini experience for playing back recordings is identical, with the 30-second scan set as default and the well-known 30-second skip backdoor still working.
These large cap stocks have dividend yields greater than the average yield on 10-year corporate paper, and 5-year credit default swap spreads tighter than that of 5-year U.S. debt.
It also builds on earlier proposals to rein in over-the-counter derivatives, such as credit-default swaps.
Anxiety about sovereign-default risk, and the budget-cutting measures to counter it, will further sap the peripheral economies, thus raising the chances of big losses on the loans British banks have made there.
That is because a default would trigger the bond-insurance contracts called credit-default swaps (CDSs).
The third came in 1998 when the long-term capital management debacle and Russia's default sent low-grade bond prices plummeting, crushing high-debt REITs like Criimi Mae and Laser Mortgage Management with margin calls.
Ratings of AAA -- which denote practially no default risk -- are crucial to the insurers because they effectively transfer their creditworthiness to bond issuers.
Some investors infamously did make money from betting against American subprime mortgages, but their real achievement was to find a way of doing so, by buying up credit-default swaps that paid out when mortgage-backed securities soured.
Given the chance, economic growth will prevent a new time bomb--in the form of credit default swaps--from exploding.
There was also a commitment to shift more and more public services online - "digital by default" - in what the chancellor called a huge culture shift for government.
The message was that they would be purposefully limited in aim, and that the core of any programme would be a debtor-led partial default - that is, the suspension of interest payments on the remaining debt and a repudiation of the terms of both Troika-brokered bailouts.
And Mr Zedillo, party flag-bearer by default, turned against his self-exiled predecessor.
Credit-default swaps, or CDS, are insurance-like contracts designed to pay off when creditors aren't paid back.
For several decades the boundaries between Christianity - as the mainstream, or default - religion in England and Wales, and "no religion" have been blurring.
BBC: 2011 Census: Is Christianity shrinking or just changing?
Some suggest replacing corporate and sovereign ratings with credit-default-swap prices, but these too can be procyclical.
ECONOMIST: Reducing reliance on ratings is a worthy goal, but not easy
Credit-default-swap spreads on European bank bonds are in almost all cases higher for banks that have less capital.
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