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And analysts say the low default rate is deceptive.
The company says the low default rate results from superior credit analysis and technology.
The rise of the derivatives market has coincided with a very low default rate.
But they have been almost nourishing in recent years, thanks to the low default rate on corporate bonds.
But this is a catastrophic error of calculation: what he is overlooking is that everybody has an electricity bill, so the "very low" default rate he is talking about is an average including millions of households with excellent credit.
Tested in a handful of markets before 2007, the mortgages were issued to about 2,000 borrowers and, based on the center's evaluation of a representative sample, showed a very low default rate.
Similar(45)
Even so, the sales material also boasted that the mortgages linked to C.D.O.'s had historically low default rates, citing a "recently completed" study by Standard & Poor's ratings agency — though fine print indicated that the date of the study was September 2002, almost five years earlier.
It reports low default rates and high customer satisfaction.
The credit default market has ballooned recently, at least in part because of low default rates on corporate bonds.
(SoFi says it is focusing initially on schools with low default rates and high graduation rates).
The big Chinese banks are fighting back, vying to lend to exporters, which tend to have low default rates.
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