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The type of bond chosen also makes a difference.
A debenture is a type of bond commonly used by large companies to borrow money.
That type of bond accounted for 28 percent of the defaults.
It is this new type of bond – known as contingent capital or cocos – that are the focus of speculation swirling around Deutsche Bank.
Many European investors are unfamiliar with this type of bond, he said, and many American investors are uncomfortable with euro-denominated debt.
His team discovered a new type of bond between hydrogen and other elements that explains why water is liquid at room temperature.
The principal type of bond is a mortgage bond, which represents a claim on specified real property.
It also said it would stop providing ratings for a year on a certain type of bond backed by commercial property.
Metal atoms will bond to one another in a third type of bond, which releases their valence electrons in a way that allows them to conduct electricity.
It is not the only type of bond, however, as can be appreciated by considering the structure of a nitrogen molecule, N2.
According to Tomas Kinmonth, an analyst at Dutch bank ABN Amro, a settlement on that scale could impede Deutsche's ability to pay coupons – or regular interest payments to investors – on a special type of bond.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com