Municipal investors have often ignored such questionable practices thanks to a generation of low default rates.
WSJ: Steve Malanga: The Many Ways That Cities Cook Their Bond Books
High default rates on construction loans were a major contributor to bank failures during the recession.
Almost a quarter of federal loan dollars go to their students, despite their woeful default rates.
FORBES: For-Profit Universities: The Yugos of Higher Education
That accounts for the low graduation rates and higher loan-default rates, the industry says.
FORBES: COCO, DeVry And Other School Stocks Will Beat Back Uncle Sam
Looking ahead, managers expect default rates to reach 2% or so over the next 12 months.
FORBES: Year-end and January Analysis - US Leveraged Loan Market
This process should actually help strengthen corporate balance sheets, and contribute to continued low default rates.
FORBES: Investor Fears Exceed Actual Risks: 2013 Is Full Of Opportunities
Until recently, default management was mostly used by for-profit colleges trying to lower their high default rates.
WSJ: Weighing Merits of Loan Deferments Today to Keep Defaults Away
The patchy credit histories of subprime and low-documentation borrowers made it hard to model default rates accurately.
Data-driven prediction markets are turning to things like employee behavior, loan default rates, and credit card delinquency.
Default rates and delinquencies dropped once again in August for most of the major credit card issuers.
FORBES: Credit Card Issuers Report Declines in Defaults, Delinquencies
Default rates fell again in June and credit card companies are getting a boost to their bottom line.
In general, managers expect default rates to climb as the year grinds on to 2%, give or take.
FORBES: March 2012, US Leveraged Loan Market Trends and Analysis
Thornburg and other lenders have been hurt by rising default rates, which reduce the value of their loans.
The firm uses statistical analysis to predict default rates from borrower attributes like income and past payment habits.
The prior estimates based on samples had understated loan default rates and overstated recoveries from loans in liquidation.
Baseline default rates went from 3% to 11% after grace periods were introduced.
Default rates remain low but are bound to climb as the economy worsens.
ECONOMIST: Meltdown may have been averted. But the crunch is not over
In America implied and actual default rates have now equalised at around 10%.
Credit protection has particular appeal at a time of high corporate default rates.
Liquid says it doesn't track overall default rates, but there are plenty of slowpokes who wait 120 days to pay.
In the end, of course, economic growth will dictate the direction of corporate earnings and, by extension, of default rates.
Sallie Mae spokesman Tom Joyce told NPR that the risk for lenders is greater at schools with higher default rates.
As those teaser rates end, and without the possibility of refinancing, default rates are expected to rise further this year.
In statistical terms: Default rates explain away group differences in scores, leaving no residual impact that can be attributed to race.
And, finally, critically important information about student results, including comparative information about default rates, graduation rates and retention rates for the school.
Right now, default rates at Prosper and Lending Club are relatively low, but that could change with the downturn in the economy.
FORBES: Banking 2.0: New Capital Connections For Entrepreneurs
Lehmann says that default rates for both grades of corporate bonds are about the same and he's comfortable taking the higher yield.
It is well known that credit card issuers face rising default rates.
They expect an increase in default rates this year or next, even if the economic conditions for borrowers do not deteriorate much.
The good news is that high default rates may be less painful in places whose sub-prime problem sits atop an economic boom.
应用推荐