Event Types

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Default

Default is the failure to repay a principal on a loan or security. It occurs when a borrower is unable to make punctual payments, misses payments, or evades making payments. Individuals, businesses, and even countries can be subjected to default if they cannot sustain their debt obligations.

  • Default risks are usually calculated well in advance by creditors.
  • It can have consequences such as lower credit scores, reduced chances of obtaining credit in the future, and higher interest rates on existing debt as well as any new obligations.

Warnings and Disclaimers

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