Sentence examples for default on a security from inspiring English sources
The credit default swaps written by American International Group are clearly insurance since they are a contractual obligation by A.I.G. to pay should there be a default on a security.
Financial Products had become one of the largest issuers of credit-default swaps, a product similar to insurance: the buyer pays the company in return for a promise of reimbursement in the event of default on a bond or other debt security.
In the catastrophic event that a debt limit impasse were to lead to a default on Treasury securities, financial markets could be shaken to their core as was seen in late 2008," the Treasury said.
The betting at this point is that Congress wouldn't possibly allow the government to default on Social Security and Medicare.
A default password is a security risk.
However, plans to cut Social Security are even more troubling because they amount to an effective default on a portion of the national debt.
This brings us to the Bachmann and DeMint solution — that there is no need to actually default on Treasury securities.
Keep in mind also that the Treasury really has no choice but to wait until the last possible minute to begin delaying payments or default on Treasury securities, because it is always possible that Congress will act at the last possible moment.
Crucially, the new bonds will be governed by English law, unlike the old ones, and will thus carry more legal protection if Greece has to default on these new securities.
But a sustained debt crisis could have immense negative effects even if default on securities (as opposed to default on contracts, which would still happen en masse) is avoided.
