Sentence examples for default premium from inspiring English sources

But in his annual default study, Jim Reid of Deutsche Bank reckons that, for single B bonds, current yields offer investors a healthy margin over the average historical default premium.

In response to this, informal lenders may add a default premium on top of the nominal interest rate, an option that is unavailable to formal financial sources, where interest rates are controlled by the government (Gonzalez-Vega [1984]).

They said that while such a move "would probably cause a new Scottish government to acquire a default premium on future borrowing" it would also "cut Scotland's fiscal deficit by about 3% of GDP", bringing the deficit "below the UK level and give Scotland a low or zero initial debt ratio".

The news sent Portugal's default insurance premium up 12 percent in a single day.

And, more systematically, a downgrade would increase the default risk premium baked into various forms of financial analysis typically pegged to the supposedly risk-free 10-year Treasury rate increasing the cost of capital and causing headaches for corporate finance types everywhere.On the other hand, a well-signaled ratings drop need not cause an economic crisis.

In other words, the default risk premium is no longer a constant and thus a linear function of time, but an increasing non-linear function of the bond time to maturity.

In the current single-digit junk bond yield environment, where there is little or no default risk premium embedded in the yields, the capital gain aspect of total return has evaporated.

And the best proxy for India's sovereign risk the credit-default-swap premium on debt issued by State Bank of India, a state-backed lender has fallen to less scary levels (see chart).But whether India has really got its house in order, and been saved from a return to junk status, is less clear.

But Penney was not headed for default and the premium sank back to a recent 450.

But Penney was not headed for default, and the premium went back down to a recent 450.

The new MacBook Pro models were updated with Ivy Bridge processors and USB 3.0 ports, and the default RAM on premium models was increased to 8 GB.