"If we see increasing default rates, the value of the mortgage-backed securities will fall, and that will curtail the flow of investment money available to finance new mortgages," including from foreign sources, Dr. McCarthy said.
Credit cards have been getting more recognition and more articles in the past month or two about their increasing default rates.
Fixed-income market strategist Richard Gordon noted that what was more surprising than the subprime meltdown itself was "how many [lenders] refused to alter their positions despite a sure bet of an increased default rate on subprime and collateral mortgages originated in 2006".
"Higher interest rates will increase debt-servicing costs and could increase default rates on existing loans," the bank warned.
Furthermore, it will "increase default rates and the need for debt restructuring, hurting banks' asset quality", Hammarlund said.
These costs have the potential to financially strain patients and their households, leading to detrimental effects such as delayed care seeking and increased default rates of TB patients, potentially fueling the spread of TB or increasing multi-drug resistant TB in sub-Saharan Africa.
By increasing the frequency and dollar amount of employer matches and increasing default contribution rates, employers can help younger employees spearhead saving more for retirement.
So, lenders do participate in the government guaranteed programs, but this also increases the default rate because, like Fannie Mae guaranteeing home mortgages in the states before the housing crisis, the lenders no longer care about credit analysis or collection efforts because they always have the government backstopping them.
The civil conflict dramatically increased the default rate of those patients (68, 25%) still receiving treatment after 28 April 2006 and led to a significant decrease in treatment completion (168/199 (84%) before conflict v 35/66 (53%) after conflict; 1.58, 1.26 to 2.01; P<0.001).
The other consequence of converting down payment into points that buy down the interest rate is increased default risk to the lender.
