Default
in sentence
1154 examples of Default in a sentence
A unilateral default, one hopes, will not be necessary.
After all, how would a Brazilian
default
affect Mexico?
Fear of
default
in distressed countries is then transformed into doubts about the sustainability of core countries’ banks, as their lending to the weaker economies comes under scrutiny.
The fiscal straightjacket should be scrapped, with governments that borrow too much allowed to
default.
What started with subprime mortgages spread to all collateralized debt obligations, endangered municipal and mortgage insurance and reinsurance companies and threatened to unravel the multi-trillion-dollar credit
default
swap market.
The government will find it impossible to fulfill basic obligations, such as paying salaries and pensions, and the country will formally
default.
All agree that Greece needs an orderly restructuring, because a disorderly
default
could cause a eurozone meltdown.
This makes the government more, not less, likely to
default.
Greece, and probably other Mediterranean countries, will
default
and regain the freedom to print money and devalue their exchange rates.
Therefore, one of the “nudges” they recommend is to make organ donation as the
default
option in the case of a fatal accident.
A fossil-free economy can happen by design or by
default.
So the Franco-German alliance will resume a leading role, if only by
default.
What resulted was a wonderful system for diversifying individual bank risk, but only by magnifying the
default
risk of all banks that held what came to be called “toxic” debt.
This scalability was magnified by the use of credit
default
swaps (CDSs), which offered phony insurance against
default.
It led directly to the spread of financial risk-management models, which, by excluding the possibility of default, grossly underestimated the amount of risk in the system.
Data openness is certainly not the
default
in my field, the social sciences.
When homeowners default, banks lose money, and uncertainty about the extent of future defaults undermines confidence in banks’ capital, making it more difficult for them to raise funds and causing them to reduce their lending in order to conserve existing resources.
That list includes, just in the last few weeks, America’s loss of its sacred AAA rating; its political flirtation with a debt default; mounting concern about debt restructurings in peripheral European economies and talk about a possible eurozone breakup; and Switzerland’s dramatic steps to reduce (yes, reduce) its safe-haven status.
Finally, Germany might not continue to accept the
default
risks implied by large ECB purchases of high-risk sovereign bonds.
Likewise, the fear, fueled entirely by the European Union’s dysfunctional politics, that eurozone governments might
default
– thereby causing the same dire consequences – has begun to dissipate.
Indeed, except for Namibia, all of these Sub-Saharan sovereign-bond issuers have “speculative” credit ratings, putting their issues in the “junk bond” category and signaling significant
default
risk.
Signs of
default
stress are already showing.
In June 2012, Gabon delayed the coupon payment on its $1 billion bond, pending the outcome of a legal dispute, and was on the verge of a
default.
Lending resumed when the authorities made it clear that Argentina would rather
default
than let the IMF continue to dictate policies that had contributed to disaster in the first place.
This has generated apprehension about property markets, and fear that local governments could
default
on part of their staggering debt of $1.65 trillion.
Ditching the euro might trigger a banking crisis, capital flight, inflation, and perhaps even sovereign
default.
For starters, futures didn’t help predict the current market breakdown, most likely because long-term futures markets are, by default, slow to adjust to new information.
The main danger now is that Asian economies will be forced to
default
on debts or cancel investment and kill growth.
The country was Argentina, which took about 10 years to move from its hard exchange-rate peg to the dollar, introduced in 1991, to its messy
default
at the turn of 2001-2002.
Greece also had a history of fiscal problems and inflation, which were supposed to be cured by admission to the European Union’s Economic and Monetary Union (EMU) in 2001 (coincidentally, just as Argentina was preparing to default).
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