Sentence examples for expectations of default from inspiring English sources
One has to assume that on some debt vintages expectations of default have risen at least a bit.But.
Expectations of default at the companies have also risen; it costs three times as much today to buy insurance on a two-year Fannie bond as it did three years ago.
And yet I believe that he is quite wrong about the implications for the euro crisis, for a couple of reasons, both of which have to do with the possibility of self-fulfilling expectations of default.
Expectations of default by Fannie and Freddie rose significantly, as measured by the credit market, a sign that "a lot of people are really concerned about liquidity and insolvency" at the companies, said Tim Backshall, chief strategist at Credit Derivatives Research in California.
Though this is an exaggeration, credit-default-swap spreads, which measure investors' expectations of default, are wider for some American states than they are for some of the euro zone's other peripheral economies (see chart).In this section Can pay, won't pay Hand to mouth Is all politics local?
Michael T. Darda, the chief economist at the hedge fund MKM Partners, said higher government bond yields could reduce growth in both countries, raising expectations of default, and inviting even higher yields and wider gaps in comparison with German bonds, the European benchmark.
But John Lonski, an economist at Moody's, reckons that spreads are signalling the expectation of default levels not seen since the Depression.
The expectation of default by the world's biggest banks reached its highest level since the Bear Stearns collapse in March, based on the market for so-called credit default swaps, according to Tim Backshall, chief strategist at Credit Derivatives Research in California.
They expect a tightening of that spread through 2015, reversing recent under-performance through the year, given their expectations of no defaults on the tranche.
The expectation of loan default in the future is associated with an expansion in lending, which may enhance the loan loss provision and build up loan loss reserves.
