The assessment of default risk is also critical in the valuation of corporate bonds and credit derivatives such as basket-default swaps. There is an important distinction between default risk under ...

The probability of U.S. corporate defaults has more than doubled in the past several years due to persistently high interest ...

CDR is related to the constant payment rate (CPR), which estimates MBS prepayment risk rather than default risk. The constant default rate (CDR) evaluates losses within mortgage-backed securities ...

A bond default occurs when a company fails to meet one or more interest payments. Higher-rated bonds offer lower returns but carry less risk of defaulting. Monitor bond ratings and issuer's ...

The CDS spread is a market-based measure of a country’s level of default risk. For the countries with a CDS spread, we use it to determine the CFR Sovereign Risk Index value. For those without a ...

However, U.S. Treasuries of all maturities have long been considered safe from the risk of payment default. That's because they are backed by the full faith and credit of the U.S. government.