To see how this affects funding costs, look at credit default swaps, which typically assume a 40% recovery rate in the event of default.
Perhaps, but without continuing external support in the event of default, Greece might also be forced to leave the euro.
Recognizing that both the household and the lender lose heavily in the event of default and foreclosure, what is the alternative?
Both could very likely get lower interest rates from private lenders if those lenders got the promise of a part-gold payment in the event of default.
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With the PSI out of the way, all eyes were on the ISDA and their ruling on whether the debt restructuring would constitute a credit event or default.
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The contract said "negative publicity" due to "alleged possession, use or sale of banned substances" by riders or team personnel would constitute an "event of default, " as would a failure to take "action" if a rider violates a morals or drug clause.
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But a unit of insurer XL Capital, which held some of ESP's junior notes, pointed to a different section of the contract, claiming that in the event of default all note holders would continue getting interest payments before dishing out any principal to BNP Paribas.
But he did not reveal any details about the Bank's plan in the event of a default.
In the event of a default, German banks will need to be backed for losses they hold on Greek bonds.
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To save the financial system in the event of a default, some sort of Argentine-style deposit freeze might be needed.
The most important thing for the Greek government to do in the event of a default would be to adopt policies that would produce rapid real economic growth.
Risk of EU default leading to market uncertainty: The EU heads, led by France and Germany, are trying to restructure Greek debt held by banks but uncertainty remains over whether rating agencies will still view this event as a default.
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Local governments encouraged the formation of a new kind of financial entity, which would charge prospective borrowers a fee and, in exchange, serve as a guarantor to the bank, pledging to pay for any losses in the event of a default.
But as a matter of simple arithmetic, if the banks don't lose and Greece gains, there must be an additional subsidy in there somewhere from eurozone governments, either in the "high-quality assets" provided as a back up or, possibly, the promise of preferential treatment for these new bonds in the event of a default.
And they've also been told that in the event of disputes the default answer to new development will be 'yes'.
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It traded as high as 39.25 on Friday before settling lower after the European Central Bank said it was standing by ready to help Italy in the event of a bond default.
Mr Darling also stressed the "urgent" need for European governments to shore up their banks because there was a "very real risk" that, in the event of a sovereign default, they would be affected because "they're not adequately capitalised".
In 1982 the Federal Reserve's horrific credit squeeze abruptly ended during that summer, when Mexico made it clear that it was about to default on its loans, an event that would have jeopardized the solvency of many major U.S. banks.
So the money that would be paid out on the CDS contracts in the event of a Greek default is already pretty much all in the bank accounts of the people who would gain it and out of the bank accounts of the people who would lose it.
The fact that Greece is stuck with the euro would actually be an advantage in the event of a Greek sovereign default, if things were handled correctly.
In the eyes of the central bank, any meddling with maturity or anything less than the receipt of full-payment at maturity would potentially constitute a credit event putting the nation at default.
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Fears at home add to global concern that economic growth may slow in the event that Greece winds up in default.
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Working out whether a default in a portfolio is likely to be an isolated event, or is a harbinger of more to come, is especially tricky, not least because data on credit defaults are relatively sparse.
Schmidt would feature prominently in the launch event, talking about Google search and YouTube being default settings on the iPhone.
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Because they would not be accepting losses on a voluntary basis it is quite possible that this will be judged a "credit event", which could count as a technical default.
All this helps to explain why the US administration has been taking a close personal interest in the eurozone's troubles - and why the US has been making it clear that it would prefer there weren't a "credit event" that could be described as a Greek default.
And when asked whether Greece would default, he insisted that European leaders would not let Greece be a "Lehmans-style event" for the global economy.
The insurer had painted itself into a corner by writing credit default swaps on mortgage-related securities and collateralized debt obligations that were set to pay out in the event that those investments soured.
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