Default
in sentence
1154 examples of Default in a sentence
So, should Venezuela
default
on its foreign bonds?
If the authorities adopted common-sense policies and sought support from the International Monetary Fund and other multilateral lenders, as most troubled countries tend to do, they would rightly be told to
default
on the country’s debts.
But the fact that his administration has chosen to
default
on 30 million Venezuelans, rather than on Wall Street, is not a sign of its moral rectitude.
After all, the Fed does not forecast recessions, and the International Monetary Fund usually does not issue public pronouncements on a country’s odds of
default.
This requires, first and foremost, determining who – the investor or the bank – bears the underlying
default
risk of high-yield wealth-management products.
Such institutional reforms would go a long way toward eliminating
default
(or bailout) risk and creating a market-oriented financial system of balanced incentives that supports growth and innovation.
This is small change in the grand scheme of global finance; but, given that many of these borrowers were in distress or
default
just a decade ago, and needed debt forgiveness, theirs is an especially impressive turnaround.
That is false, just as previous claims that no one would lend to Argentina after its umpteenth debt
default
turned out to be false.
Consider this: we tend to retain our rough drafts, years of e-mail traffic, and thousands of ghastly digital snapshots on our hard drives, not because we have decided that they are worth remembering, but because keeping them is now the
default
way of doing things.
Pakistan’s efforts to stave off
default
create leverage that the US should use.
That means that lenders could pursue borrowers’ other assets – not just the house – in case of
default.
In principle, banks should be attracted to the proposal, because restructured loans are less likely to
default.
That is why every debt crisis, sooner or later, ends in restructuring or
default.
We still don’t know the full extent of linkages among financial institutions, including those arising from non-transparent derivatives and credit
default
swaps.
If the Greek people decide in a referendum to default, the ECB will incur large losses, as much of its collateral would become worthless and the Greek banking system would collapse.
The eurozone cannot stabilize in political and economic terms without a solid framework for crisis resolution and an ability to deal with sovereign
default
by a member state.
Meanwhile, American courts have forced Argentina into another national
default.
Higher exports will also generate the foreign exchange needed to resume external debt payments, now in
default.
If the Republican Party takes full control of the US Congress in November’s mid-term election, policy gridlock is likely to worsen, risking a re-run of the damaging fiscal battles that led last year to a government shutdown and almost to a technical debt
default.
The first shaky principle is that if the return on these bonds is highly correlated, so that they all
default
at the same time, overcollateralization is not much help.
By contrast, if the returns are uncorrelated, it is extremely unlikely that they will all
default
at the same time, making overcollateralization sufficient to guarantee a safer return.
Creating a common central bank without a common treasury means that government debts are denominated in a currency that no single member country controls, making them subject to the risk of
default.
Yet in recent years, topics about which most people had never heard or cared – for example, securitization, credit
default
swaps, and the European payment system known as Target 2 – have imposed themselves on public debate, forcing ordinary people to grapple with their intricacies.
Argentina’s
default
in 2001 is but one useful example.
Argentina went through a complete and chaotic
default
on its public debt.
But, with debt still unsustainable, the next round of Greek
default
could well make Argentina’s look positively Teutonic in its orderliness.
Fiscal crisis and
default
reduce the value of the former, while the ensuing recession undermines the value of the latter.
Optimists point out that the country is supposed to eliminate its primary deficit (the budget balance minus interest payments) by 2013, which implies that it could pay its non debt-related bills with its own resources after a
default.
Smooth convergence of risk premiums for inflation, exchange rates, and, perhaps most importantly, debt
default
with those prevailing in the eurozone are crucial for alleviating possible shocks to the financial system.
But if they "euroize" too soon, candidate countries could find themselves with lower domestic interest rates but a higher external
default
risk.
Back
Next
Related words
Would
Their
Government
Countries
Which
Sovereign
Country
Financial
Could
Other
Bonds
Crisis
Creditors
There
Rates
Banks
Interest
After
Markets
Should
