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To put these prices in perspective, consider that at these spreads, a full 25% of the price of long-term Baa-rated corporates represents compensation for default risk.
By contrast, today's rate of compensation for default risk in the midst of a strong economy is higher than during most postwar recessions.
A corporate bonds spread to Treasurys represents compensation for default risk, and a simple formula relates a given spread to an implied probability of default.
To put this in perspective, consider that at these spreads, 25% of the price of long-term Baa-rated corporates represents compensation for default risk (at least, for tax-exempt lenders like IRA accounts).
Similar(56)
Lotfi Raissi, the Algerian wrongly accused of training pilots involved in the 9/11 terrorist attacks in New York, was given the go-ahead yesterday to renew his bid for government compensation for "serious defaults" by police and the Crown Prosecution Service.
That, in my book, is far from adequate compensation for the risk of default.
This shall not affect the right to claim any further compensation for damages caused by default.
We introduce an alternative conceptual basis for default reasoning in Reiter's default logic.
Tells about preparations made for default.
Investors are being overcompensated for default risk.
Find the listing for "Default Gateway".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com