Remember, the higher the yield on any debt product, the higher the risk of default.
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What really matters is whether the interest margin properly reflects the risk of default.
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Not only does America earn interest on its contribution, but the risk of default is almost negligible.
If anything, growth should cause yields to fall due to a stronger currency and a lower risk of default.
Cyprus remains at risk of default, and of a Eurozone exit, even if the current crisis is ultimately resolved.
The higher the risk of default on a promised stream of payments, the higher the lease or interest rate.
Because lenders expected to be able to sell on the risk of default to someone else, they lent too easily.
Whitaker is not at risk of default, but her home is now one of 20 on the market in Peachtree Hills.
Because they have a higher risk of default, struggling companies must pay a higher interest rate to borrow money.
Morgan already makes a market in the risk of default after 2005, when debt without guarantees will start to be issued.
Yet if leaving the euro is unthinkable, the risk of default by a country that stays in has clearly gone up.
Accordingly, a private replacement for Social Security would have to take the form of a fully-inflation-indexed annuity with zero risk of default.
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With falling house prices, the risk of default could indeed add 0.75% or more for a newly underwritten and fully documented loan.
Because the risk of default on these bonds is small, their prices are driven by the same economic forces as government bonds.
Historically, the risk of default adds about 0.25% to the interest rate.
Additionally lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
But there is no evidence that the bonds would have a higher risk of default as they got closer to the maturity date.
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That was ruled by the Treasury as falling outside the public sector borrowing requirement because it claimed the risk of default was so small.
Easy credit could put corporate borrowers at greater risk of default, but even now, distressed debt investors are recouping far more than they have in previous years.
This may be a sign that some consumers are again taking on too much debt and are a higher risk of default in the future.
What I have said, what everyone has said, is that once we lose our borrowing authority we become at risk of default on our obligations.
And that process begins at midnight on August 2nd in terms of no longer being able to borrow, which puts you at risk of default.
But given the implication of higher risk of default, it ought to follow that a lower credit rating would also mean a higher interest rate.
And, Social Security is perceived to have no risk of default.
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Mortgage-backed securities were used in some cases to mask the risk of default inherent within sub-prime loans, and contributed to the real estate crash and recession.
Lenders say they need to charge higher rates partly because buyers of manufactured homes often have low incomes, imperfect credit and carry a higher risk of default.
And since there is no capital at risk for the GP if a fund loses money, the risk of default on the debt is borne solely by the LPs.
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And others may judge that an interest rate big enough to compensate for the risk of default would only add to the pressure on Greece, making default more likely.
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