This would imply that it would make sense to skew investments towards higher rated borrowers (A & B), as the total return will likely be higher after accounting for
the expected higher defaults in C and lower borrowers.
Not exact matches
But a continuation of favorable economic growth and low
default levels — which we
expect — and measured Federal Reserve tightening — which we also
expect — should support more narrow
high - yield bond spreads for some time to come.
While I don't
expect a significant deterioration in credit markets next year, conditions are turning less favorable: corporate leverage is
higher,
default rates are rising and with oil hovering near $ 40, energy issuers are at risk.
Also, if your credit history reveals that you usually
default in making payment, you should
expect high interest rate.
It doesn't appear that the concerns over the swaps were ever put in terms of systemic risk but rather as just something that had
higher than
expected likelihood of
default.
Without a cosigner with a good rating, the bank will charge a
higher APR to offset the
higher expected default rate.
As you might
expect, the lower the quality, the
higher the rate of interest investors demand to reward them for accepting the increased risk of
default.
Also, if your credit history reveals that you usually
default in making payment, you should
expect high interest rate.
With the broader onset of automation, many of the best notes (
highest expected return, lowest risk of
default) are gone before you could manually buy them.
Applying a quality screen to the market can remove those securities with the
highest expected chance of
defaulting, resulting in a
higher quality universe of securities from which to build a portfolio.
The pace of price recovery plays a major role Should oil prices recover over the next year, we would not
expect to see
high levels of
defaults in the
high - yield market.
Higher default rates are to be
expected in lower paying occupations like Nurse's Aide (51 %
default rate) and food service (44 %) but you might be surprised to see that realtors (49 %) have the second -
highest default rate.
If you doubt this, consider the
high currently
expected rate of
default on FHA loans originated over the last two years.
I should
expect a few
defaults here and there that will eat into my returns since I'm going for the
higher APR loans.
In an age where addictive gameplay usually comes with a «microtransaction» premium, Bravely
Default challenges everything we've come to
expect from a brand new,
high quality handheld franchise.
What is more readily available are lender insurance policies that protect against two unlikely events: borrower
defaults and the environmental costs being
higher than
expected.
Morningstar Credit Ratings believes the delinquency rate will hold below 3.0 percent after reaching an 18 - month
high of 2.19 percent in June, as there are fewer securitized commercial mortgages left that we
expect will
default at maturity, resolutions remain
high and issuance has picked up.