Tag defaults

Repurchase agreements are why default would be catastrophic

Repurchase agreements are short-term trading in government securities. The global repo market is in the trillions. Default would cause the price and value of US government securities to wobble badly, and that would cause sympathetic detonations in financial markets across…

Home delinquency rate. One in 7 homeowners

The reason for the foreclosures is mainly due to extended unemployment rather than onerous subprime mortgages. Many of the defaults are with prime fixed-rate mortgages by people with good credit. Some of them may well be underwater on the home…