The phrase "high default" means that there is a large number or percentage of people or entities who are unable to repay their debts or fulfill their financial obligations. Full definition
Rising interest rates are likely to result in investors projecting ahead to slower economic growth and the possibility of higher default rates. (rba.gov.au)
On the other hand, floating rate loans tend to be lower - quality bonds with higher default risk. (mutualfunds.com)
Lenders consider borrowers with damaged credit as risky and charge high interest rates to compensate for higher default rates. (supermoney.com)