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Such securities are supposed to have a miniscule chance of defaulting.
Researchers there found the borrowers with the highest chance of defaulting have less than $10,000 in student debt.
"But in the end, reasonable people were able to agree on this: The United States could not take the chance of defaulting on our debt".
Inside, economics editor Dan O'Brien says the chance of defaulting on debts increase in the absence of socialising some of the losses.
Debts rated Aaa by Moody's, for instance, have historically had a 0.1% chance of defaulting within five years, a Baa rating a 1.8% chance, and a B rating a 32% chance.
"If Republicans aren't willing to set aside their partisan concerns in order to do what's right for the country, we stand a good chance of defaulting, and defaulting could have a potentially devastating effect on the economy," Mr. Obama told reporters at Martha's Table, a Washington-area food bank.
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The White House has pushed for Fannie and Freddie to allow mortgage servicers to reduce the amounts homeowners owe on their mortgages to reduce their chances of defaulting.
This chart, based on data from November 2008 to January 2009, shows how a homeowner's chances of defaulting on a mortgage increase when the amount owed on the loan (or loans) becomes greater than the value of the property itself.
According to the credit default swap market in London, there is a 90% chance of Pakistan defaulting on foreign loans due for repayment in the next three months to two years.
Hence there is zero chance of default.
"Any chance of default?" I asked.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com