Presumably, the central banks around the world will institute Quantitative Easing by buying up bonds with very low default risks.
Default risks, as measured by credit default swaps, are on the decline in the emerging markets and even better than a number of European countries.
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This both increases the volatility of equity returns and transfers value from debt to equity in the presence of default risks but has little to do with the Modigliani-Miller theorem in which default risk plays no part.
But there is concern within the euro bloc that a default by Cyprus risks undermining the progress being made in Greece.
Also purchase Renminbi-denominated assets as China, in its attempt to position itself as a global reserve currency, will likely lend support to any company that risks default.
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Greek default and contagion risks across the Eurozone periphery.
Congress must agree to raise the limit on how much debt the U.S. can have by the end of February otherwise the country risks default and could be slapped with damaging credit downgrades.
Twice as many women said they had avoided taking on debt because of risks like default and bankruptcy.
The regulators are also keen to move more over-the-counter markets - which are largely unregulated - on to exchanges to ensure more transparency and mitigate the risks of default.
Yet when we adjust for the risks of default we find that munis have much higher prices (lower yields) then the risk profile would lead us to think they should.
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Provisions for losses increased dramatically from 7.8% in 2007 to 16% in 2008 because of the credit crisis but recovered back to 10.6% during 2009 and 7.5% in 2010 as the banks have become more conservative in their lending standards and are avoiding making loans where the risks of default are high.
If demand is cut again, the risks of debt default and a wider collapse in bank credit are high.
Financial institutions are underwriting Shariah-compliant loans and bond issuances without really understanding the risks associated with default and bankruptcy treatment.
Delay highlights the risks of debt default and a euro-zone break-up.
DB, Societe Generale and BNP Paribas clearly own significant amounts of PIIGS debt and seem to be at risk with a restructuring or default, in addition to risks of potential wider contagion.
The odds of a sovereign-debt default have shortened, making other risks seem less improbable as well.
Talks between Greece and its private creditors were still under way when The Economist went to press, but the risks of a disorderly default are mounting.
There are other risks besides the potential for default.
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Coming when investors already are concerned about the strength and duration of the economic recovery, and the cost of the fiscal policies that led back to growth, Dubai World's default risk may be only one of the risks that market actors were underpricing.
Investors would expect higher yields for the risks involved of lay payments, or outright default.
But this time, the security risks may be worse: The Ikee worm used default passwords to access phones via SSH.
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One of the ways the market measures credit risks is by looking at the spreds of credit default swaps, a default insurance derivatives market that measures the risk of buying foreign bonds as compared to buying a comparable maturity from the US Treasury.
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Commercial banking had risks, too, but they were confined largely to default risk.
While the rating agencies mutter about downgrading Treasury debt, the markets seem absolutely copacetic about the risks of a late summer U.S. bond default.
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It would be the first default by a developed nation in living memory - and would increase the perceived risks of lending to other financially stretched eurozone governments.
"The proposal to lower down payments is of particular concern given the greater default risk of these loans and the difficulty of setting prices for new products whose risks may not be well understood, " the report said.
More critically, these risks can spread like wild fire as we saw in collateralised debt obligations and credit default swaps markets.
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Judging by the credit default swap spreads on Italy, Spain, Greece, Portugal and now government bonds in France, the risks to bondholders is growing.
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