In benchmarking that price point as the default value for nearly all books in the Kindle Store, Amazon was discounting to a loss, presumably to build adoption of the Kindle platform.
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Markit, for example, gathers information from a large collection of financial services companies to provide an independent view on the value of credit default swaps.
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Some go so far as to say that if a bond is insured and bondholders receive back the par value, no default has taken place, just an unscheduled call.
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Another news story that was blown out of proportion was the notional value of credit default swaps and the power of those swaps to keep the stock market headed downward, during the recent bear market.
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The FTC says Countrywide charged homeowners who were in default excessive fees for services like lawn mowing, property inspections and other services that were meant to protect the value of the property in default.
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Because he thinks that by enabling growth, default plus devaluation might actually raise the present value of those bonds, compared with the current scenario, which he thinks will mean default happening when the debt stock has risen that much higher and the economy has been hammered that much harder.
Thornburg and other lenders have been hurt by rising default rates, which reduce the value of their loans.
They will default, their currency will lose value, and high inflation will result, causing higher unemployment and a further erosion of their economy.
That drop in value caused Plaza Group to trigger the loans' net asset value ratio covenant and default, according to filings made by Plaza Group in bankruptcy court.
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.
By late 2007, the notional value of outstanding credit-default swaps was about sixty trillion dollars more than four times the size of the U.S. gross domestic product.
Meanwhile their shares, which would normally be the most worthless securities in a default, suggest that the firms still have substantial value.
Unless the ECB were to do something stupid, a debt default by Greece would have no impact upon the value of the euro, so the Greek economy would still have a viable currency.
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.
At which point, presumably, the rest of the eurozone would have to accept a Greek default and a much more significant reduction in the value of what the country has to repay than the implied 21% that has been allowed so far.
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.
Canadians who take out mortgages worth more than 80% of the value of the property must also take out insurance against default from a federal agency, the Canada Mortgage and Housing Corporation.
This downward spiral may have been exacerbated by Europe's efforts to cut the value of Greek sovereign debt without triggering a payout on credit-default-swap contracts.
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That means any Greek default would cost the ECB billions of euros in losses and potentially impact the value of the euro, disrupting European and international financial markets, and the conduct of European monetary policy.
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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.
Casden's representative has said the properties will be brought out of default once the dispute is resolved, but given the lawsuit, Forbes is discounting the value of these properties.
Treasurys remain a top choice for investors who value short-term safety over long-term growth because they carry negligible risk of default, says Erik Weisman, a portfolio manager at fund company MFS Investment Management.
Some loan pools already have seen default rates exceeding 40%, a big reason many subprime bonds trade at a fraction of their face value, and their holders won't recover their full principal balance, despite the recent rally.
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