To calculate the value of each loan in their portfolio, for example, bankers need to know three things: how much it will earn the bank if fully paid back, how likely the borrower is to default and, in the case of default, how much the bank can expect to get back.
In a worst case default scenario, expect another run on money market funds necessitating another Lehman-like bailout, compounded by a major sell-off in equities, and a doubling of unemployment.
At first, these were taken out by the buyers of bonds like Soundview 2005-1 - to protect themselves in case of default.
And that the countries in the eurozone must give up some sovereignty on fiscal policy, or face a euro armageddon in case of default.
The loan guarantee acts as lenders' insurance in case of default or unforeseen delay for technologies trying to go commercial for the first time.
Some applicants for VAT registration numbers are also being asked to put down a bond, effectively a deposit, in case they default without paying VAT.
Nearly a third of our states do not allow lenders the recourse provisions necessary to go after a borrower's personal assets in case of default on a residential mortgage.
In the case of a default by the bank, bondholders have access to the underlying loans.
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In reality, I believe the notion that the market is overcompensating investors by 6 percentage points for default risk grossly overstates the case.
Banks will seize such virtual assets in case of a default, or renegotiate the terms of a loan if a company misses a launch date, a sales target or an expected follow-on round of venture capital.
"Supplier default" coverage protects you in case the tour operator, cruise line or airline goes bust, though some policies don't include it.
The SEC brought its first case involving exchange-traded funds only last month, and its first case involving credit-default swaps in 2009 (it lost).
French President Sarkozy convinced his German counterpart, Chancellor Merkel, to soften her position on the extent of losses in the case of a Greek default.
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Even if the debt crisis manages to avoid the worst-case scenario of a Greek default and subsequent collapses of other sovereigns and financial institutions, the Euro zone is staring down a lengthy period of minimal or nonexistent growth for several of its members and that could challenge the earnings potential for some American companies.
But words mean something, and this looks like a case of managing, not avoiding, default.
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This has meant that the case for Ulster unionism is going by default.
Mr Rato played an important role as an intermediary in the IMF's most difficult case of the past few years: the default of Argentina in 2001.
In any case, a deal would have been hammered out in the default process, a deal that would potentially have had little impact on the holders of Irish Government bonds.
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The worst-case scenario, according to de Castries, would be a disorderly default by Greece leading to its collapse out of the euro.
His worst-case scenario assumes that 90% of the CMO's mortgages default and it recoups only half their value, resulting in a net 45% loss.
In such a case, the federal government would surely become the insurer of last resort by default.
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But in the case of the debt ceiling, if Republicans think they will escape blame for a default, they are delusional.
This case, then, is one of the several moving parts that will help shape the future of sovereign default and debt restructuring.
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