A bank can cope with isolated defaults of this kind.
Not all defaults, of course, occur after misrepresentations.
When the economy is weak, defaults of these securities tend to rise sharply.
"Defaults, of course, are a concern, but they are not likely".
But defaults of a different kind could be the big issue of 2008.
One indication has been a big pick-up in defaults of junk borrowers.
He noted that the rate at which investors recovered money from defaults of general obligation bonds has historically been high.
You can just let the mortgages of the many work to indemnify the defaults of the few.
Notwithstanding the recent municipal bankruptcy filing of Harrisburg, Pa., defaults of the highest-rated municipal bonds are rare.
Any cash injection by central banks, even though deemed necessary to avoid defaults of financial institutions, is unlikely to reduce borrowing costs among banks in the long run.
To enter the force field of the Aztecs' collective dream, at the Guggenheim, is to reset the defaults of your imagination.
