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Subprime mortgages are made to borrowers with low credit ratings and have higher risk of default.
Banks need to be convinced that the economy has turned a corner before they extend loans to companies they consider at higher risk of default.
The agency said it saw a higher risk of default because of the uncertainty over whether Congress would raise the debt limit.
These corporate issues, given low credit ratings because they have a higher risk of default, have gained renewed attention in the last year.
The now-riskier tranche of borrowing would turn toxic, with yields on it soaring as borrowers priced in the higher risk of default.
A similar standoff over raising the debt limit in 2011 led Standard & Poor's for the first time to downgrade its rating of United States Treasury debt by one notch, suggesting a higher risk of default.
Similar(42)
These "underwater" borrowers are at higher risk of defaulting on their mortgages.
Like stock investors, high-yield bondholders are expecting the nation's economy to recover this year and figure that prices on junk bonds have already fallen far enough to compensate them for the higher risk of defaults, analysts say.
Just because people making under $30,000 a year tend to be at higher risk of defaulting doesn't mean that they should be denied access to vital credit.
Such a prognostic index will also allow targeting of patients at higher risk of defaulting hence reducing the costs of intervening in patients who do keep their appointment.
These services have to be tailored for those individuals who face increased risk of getting infected with TB and developing active TB, and for those with higher risk of defaulting treatment and having challenges of accessing and fully utilising services, including refugees, asylum seekers, migrants and mobile populations [ 11].
More suggestions(16)
rising risk of default
higher risk of defaulting
higher risk of rosacea
higher risk of recession
higher cost of default
higher risk of accident
higher risk of poverty
higher probability of default
higher likelihood of default
higher risk of dementia
higher risk of depression
higher risk of chronic
higher rate of default
higher risk of lung
higher risk of skin
higher risk of deflation
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com