Defaults
in sentence
234 examples of Defaults in a sentence
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.
This is a new program, and it remains to be seen how well it will work to prevent future
defaults.
Unfortunately, there is no program to deal with the
defaults
and foreclosures caused by high loan-to-value ratios.
Given the large number of negative-equity homeowners, there is a risk that
defaults
and foreclosures will continue.
In addition to this increase in the real cost of debt service, deflation would mean higher loan-to-value ratios for homeowners, leading to increased mortgage defaults, especially in the US.
China’s local governments have been accumulating mountains of debt to fund their construction binges, raising serious concerns about potential
defaults.
In all the major countries, this resulted in defaults, significant and continuous exchange-rate adjustments, and, by the end of the decade, a severe inflation/devaluation spiral, bordering, in some cases, on hyperinflation.
The difficulties intensified when risk aversion in international financial markets increased markedly, owing to other emerging-market
defaults.
Official statistics show a slowdown in real growth in the old manufacturing and construction-based economy, reflected in declining corporate profits, rising defaults, and an increase in non-performing loans in poorer-performing cities and regions.
Sovereign defaults, which may yet be the end-result of one country’s failure to reform, could be better facilitated, in terms of loss sharing and mitigating contagion.
Notwithstanding some bumps along the way, the succession of such programs in the 1980s helped avoid disruptive defaults, and culminated in meaningful reductions of debt and debt-service obligations, which helped several Latin American economies restore high growth and financial viability.
If Greece defaults, an enormous amount of speculation will be possible.
If Greece defaults, the EU will be legally justified and politically motivated to insist that the euro remains its only legal tender.
After all, steadily rising property prices mean that, if a borrower defaults, the property can be resold at a profit.
Third, if you plug an unemployment rate of 10% to 11% into any model of loan defaults, you get ugly figures not just for residential mortgages (both prime and subprime), but also for commercial real estate, credit cards, student loans, auto loans, etc.
And if
defaults
on loans to corporations are widespread, as these organizations predict, the implications for the banks could be dire.
In principle, credit ratings are based on statistical models of past defaults; in practice, however, with few national
defaults
having actually occurred, sovereign ratings are often a subjective affair.
Unless some rational compromise is agreed, insistence on that approach will lead only to massive and even more costly
defaults.
While American households have reduced their debt considerably (mainly through mortgage defaults), household debt in many other countries has continued to grow rapidly.
Over the next five years, a record $1.5 trillion worth of nonfinancial corporate bonds will mature each year; as some companies struggle to repay,
defaults
will most likely rise.
Corporate
defaults
are already creeping upward in China; and in Brazil, one-quarter of all corporate bonds at a higher risk of default are in the industrial sector.
While individual investors in bonds may face losses,
defaults
in the corporate-bond market are unlikely to have significant ripple effects across the system, as the securitized subprime mortgages that sparked the last financial crisis did.
Fearing sovereign defaults, bond markets would charge governments punitive interest rates on their borrowing.
But if his politics fail, the latter-day anti-Dreyfusards will be back with a vengeancNow watch this: Philippe Aghion on Macron's economic programThe Seven-Year DitchPRINCETON – There are historical precedents for sovereign-debt
defaults
by the countries of Europe’s southern periphery, but they are not instantly attractive ones.
Unfortunately, this best case probably is not enough to prevent future sovereign-debt
defaults
in countries like Italy, Spain, and eventually even France.
The result was widespread
defaults
on foreign debts, financial distress, and the collapse of international capital flows.
The Germans have been widely castigated for pointing out that Europe has no clear mechanism for sorting out sovereign (government) defaults, and that surely it needs one.
Second, the profits and earnings of corporations and financial institutions will not rebound as fast as the consensus predicts, as weak economic growth, deflationary pressures, and surging
defaults
on corporate bonds will limit firms’ pricing power and keep profit margins low.
With fear of bank runs and
defaults
receding, banks’ reserve ratios became ever smaller, thus increasing their lending facilities.
Either the eurozone moves toward a different equilibrium – greater economic, fiscal, and political integration, with policies that restore growth and competitiveness, including orderly debt restructurings and a weaker euro – or it will end up with disorderly defaults, banking crises, and eventually a break-up of the monetary union.
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