high default rate

USAGE SUMMARY

The phrase "high default rate" is correct and usable in written English.
It can be used in contexts related to finance, lending, or risk assessment to describe a situation where a significant percentage of borrowers fail to meet their debt obligations. Example: "The bank is concerned about the high default rate on personal loans, which could impact its overall profitability."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

23 human-written examples

"They had a very high default rate".

The New York Times

"Unsecured lending has a high default rate," she says.

The Economist

Despite the high default rate, Corinthian still benefited from the loans.

The Guardian

That strategy created some of its trouble because it suffered a high default rate on the loans.

The New York Times

"The fundamentals are still poor, but a lot of bonds are priced for an extraordinarily high default rate," Ms. Caron said.

The New York Times

"We think the high-yield market is attractively valued and that the high default rate is priced in," said Tom Price, co-portfolio manager of the Strong High-Yield Bond fund, which has returned 0.75percentthis yearar.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

35 human-written examples

Nevada, Arizona, Michigan and Ohio also had high default rates.

The New York Times

WASHINGTON — The Federal Housing Administration expects to lose $4.6 billion because of unexpectedly high default rates on home loans, officials said Monday.

The New York Times

In recent years, only a handful of institutions have lost eligibility for federal aid because of high default rates.

The New York Times

Colleges with consistently high default rates can lose their eligibility for federal financial aid.

The New York Times

"If you accept low-income students, you're going to have high default rates," Mr. Miller said.

The New York Times

Expert writing Tips

Best practice

Use "high default rate" when describing the performance of loans, bonds, or other financial instruments. The phrase indicates a significant portion of borrowers are failing to meet their repayment obligations.

Common error

Avoid assuming that a "high default rate" is solely caused by one factor. Default rates are often influenced by a combination of economic conditions, borrower demographics, and lending practices. Investigate and acknowledge multiple contributing factors for a more accurate analysis.

Linguistic Context

The phrase "high default rate" functions as a noun phrase, where "high" is an adjective modifying the compound noun "default rate." Ludwig AI confirms its correct and usable nature in written English. It commonly acts as a subject or object in sentences, describing the performance or risk associated with loans, bonds, or other financial instruments.

Expression frequency: Common

Frequent in

News & Media

60%

Science

30%

Formal & Business

10%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "high default rate" is a grammatically sound and commonly used term, particularly in financial and economic contexts, to describe a situation where a significant proportion of borrowers are unable to meet their repayment obligations. As Ludwig AI confirms, it is usable in written English. When using this phrase, it's important to quantify the rate for clarity and to consider the multiple factors that may contribute to it. While the phrase is suitable for neutral to formal registers, it's essential to avoid oversimplification and to acknowledge the complexity of default rate analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Elevated default rate

Replaces "high" with "elevated", suggesting a more formal tone.

Increased default rate

Substitutes "high" with "increased", emphasizing the change over time.

Significant default rate

Replaces "high" with "significant", highlighting the importance of the rate.

Substantial default rate

Similar to "significant", but emphasizes the size or amount of the default rate.

Considerable default rate

Indicates the default rate is noteworthy and should be taken into account.

Large default percentage

Replaces "rate" with "percentage", offering a more statistical feel.

Poor repayment rate

Focuses on the opposite of defaulting, highlighting the failure to repay.

High delinquency rate

Uses "delinquency" as a synonym for "default", referring to late payments.

High non-payment rate

Emphasizes the lack of payment as the primary issue.

Mounting defaults

Shifts focus from the rate to the increasing number of defaults.

FAQs

What does a "high default rate" indicate in finance?

A "high default rate" signifies that a considerable proportion of borrowers are failing to meet their debt obligations, which can negatively impact lenders and investors. It's an indicator of financial instability or poor lending practices.

How can I describe a situation with many defaults instead of saying "high default rate"?

You could use phrases like "elevated default rate", "increased default rate", or "significant default rate" depending on the context.

What are some factors that contribute to a "high default rate" on student loans?

Factors contributing to a "high default rate" on student loans can include high tuition costs, lack of job opportunities after graduation, and inadequate financial literacy among borrowers.

Is there a difference between "high default rate" and "high delinquency rate"?

While related, "high default rate" refers to borrowers who have failed to repay their loans according to the agreed terms, while "high delinquency rate" indicates borrowers who are behind on their payments but haven't yet defaulted. Delinquency can lead to default.