They found that those who flunked the test were much more prone to defaulting than the numerate, who were much more likely to manage to keep paying.The numeracy quiz that the study's authors gave to their sample of borrowers was hardly rocket science.
Far from discriminating arbiters of quality, accrediting bodies have consistently certified schools whose students have been most prone to defaulting on their federal loans, conferring legitimacy on some of the worst-performing institutions, a Huffington Post investigation has found.
But when the furore cools, they will be prone to default back to defending the City against "banker-bashing".
Banks, mortgage companies, brokers and appraisers all conspired to steer borrowers into loans with escalating interest rates, balloon payments and other conditions that made them highly prone to default.
A first concern refers to the possibility that banks specialized in the real estate development sector lend disproportionately to firms prone to default at the beginning of a recession.
As home prices fell and homeowners sunk into default, bonds built of mortgages became risky assets prone to default -- and never mind the AAA ratings.
The municipal bond market, long a regulatory backwater, has become too prone to defaults and accounting irregularities, said Elisse B. Walter, one of the five S.E.C. commissioners.
And the hope is that group members will be less prone to default because doing so would lower the credit rating of their group as a whole.
Their total principal amount of $44.5 billion is low compared with that of corporate defaulters, because the typical municipal issue (especially revenue bonds, which are most prone to default) is much smaller than a corporate one.
Here in the UK, we're more prone to a default hum of self-mockery and entirely used to seeing our celebrities send themselves up.
Firms that are less prone to experiencing corporate default have top management teams with higher functional heterogeneity and education levels, shorter organizational tenures, and more tenure heterogeneity (Greening and Johnson 1996; Hall 1994).
