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Investors would ask for a huge premium to cover the risk of further default.
Some examples: Hope for Homeowners is a Federal Housing Administration program designed to modify existing loans by writing down the principal, offering insurance against further default and introducing shared appreciation on the property.
Further default VBM5.1 parameters were used (bias regularisation = 0.0001, bias FWHM cut off = 70 mm, sampling distance = 3).
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Expect further defaults on debt.
For the government, the sanctions raised the dire possibility of further defaults.
The markets are already pricing in the possibility of further defaults.
Widespread foreclosures, however, only perpetuate the downward spiral of housing prices, further defaults and additional losses at financial institutions.
(In November, the government defaulted on $800m of World Bank debt. Without an IMF agreement, further defaults are likely).
After an exit debts to foreign creditors would soar as the new drachma fell, leading to further defaults.
The prospect of further defaults was highlighted by figures showing one in six HBOS mortgage customers, around 17%, were in negative equity at the end of last year.
That hints at a vicious cycle of foreclosures that both depress home prices and weaken the social and economic barriers to further defaults.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com