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Questions tagged [default]

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0
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0answers
15 views

Can Credit Default Swap have a variable premium as the risk of default go down?

If the risk of underlying entity goes up, then shouldn't the premium for CDS go up as well? are CDS premium always fixed by default?
0
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1answer
80 views

Why would someone sell credit default swaps for companies with high chance of defaulting?

Similarly, why would anyone buy credit default swaps for companies with low chance of defaulting?
6
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2answers
316 views

Is Mexico on the verge of defaulting on parts it’s national debt before Andrés López Obrador take office?

All bonds issued by Mexico with maturity scheduled for 2018 are traded at a huge discount of their face value. I mean whatever currency or stock exchange used here’s an example : For reference, they ...
-1
votes
1answer
221 views

Gold price in my country. Is it a good investment during hyperinflation? [closed]

On Wednesday, expectations of interest rate hikes in the United States limited profits and put pressure on gold. US gold futures for delivery in December 2018 fell to $ 1,211.50 per ounce, pressured ...
4
votes
2answers
321 views

Argentina default warnings. Should I buy land?

Since my last question, things have worsened, and they will continue to do, so I diversified a little my savings, but now I'm thinking of buying some land. I have the opportunity to get some cheap ...
3
votes
3answers
283 views

If my mortgage were to be foreclosed prior to completion of repayment, would I receive any cash value back for the payments I have made?

First: This is hypothetical, more of a curiosity than something I need actual help with. Lets say I had a 100k house, and over the past 10 years I'd paid down 50% of the value of the house -- That is ...
0
votes
2answers
226 views

Ramifications of not paying a credit card

Scenario - Credit Card bill has not been paid for about a year. (A small amount, about $1700.00) There's a debate in the family. One side says pay it all off now (money was received from the sale of ...
0
votes
2answers
220 views

How badly is one's credit score affected if one stops paying one card but keep paying others?

I am in a very tight situation and I am wondering how the FICO score behaves if I stop paying 2 cards out of 4. How badly would it go down and how badly would it affect applying for loans at different ...
0
votes
2answers
116 views

Loan default and its effect on the outcome of visa application

In 1997, I took a 5000 GBP loan and was not able to repay. In 1998, I left the UK. Will this loan be erased from my identity? Will I be able to get a UK visa again?
2
votes
2answers
151 views

How do car dealerships benefit from $0 down bad credit car sales?

This might be a better fit on the economics SE, but having browsed both I feel the body of knowledge here is more applicable. For as long as I've heard car ads on the radio or TV I feel like I've ...
0
votes
1answer
93 views

Approximation of equity value for company in default [closed]

I want to come up with an estimate for where the share price of a company may end up in a bankruptcy/event of default. What is a commonly-used rule of thumb for this? I know it will vary greatly from ...
0
votes
1answer
116 views

Continued Paying For Home After Bankruptcy Discharged Debt - Can Someone Regain Responsibility?

My mother declared bankruptcy a few years ago, and all of her debts were discharged, including a car that was repossessed, and a house, which she continued making payments on (Was never behind), even ...
6
votes
4answers
211 views

If I were to get into a life situation where I would not be able to make regular payments, do lenders typically provide options other than default?

Lets say I had a home loan and suddenly lost my job. I have a few months savings, but for whatever reason am aware that I will not be able to make regular payments and will default on my house if I ...
1
vote
2answers
180 views

When to buy and sell bonds

I am trying to understand the concept of when to buy and sell bonds of countries. I am looking at Greek bonds. In the Financial Times newspaper there was a story saying "Athens' two year bond yield ...
6
votes
1answer
135 views

If I default on a debt is the effect on my credit score the same regardless of the amount of debt?

If I default on a debt is the effect on my credit score the same regardless of the amount of debt? For example if I default on a few hundred dollars of medical debt would that effect my credit score ...
10
votes
5answers
1k views

What happens if I just don't pay my student loans?

My friend said she never pays her student loans and nothing has happened. She's been out of school for a couple years and is only employed under the table and doesn't have a bank account. If I don't ...
2
votes
2answers
785 views

How do I exit a toxic auto-loan with the least personal damage?

I spent much of my 20's making very poor financial decisions. I never drove a decent car and constantly found myself on the side of the road or without a vehicle. Situation At 29 I made a change in ...
5
votes
1answer
597 views

Remedies for Defaulting on a 401(k) loan

I changed employers and am unable to pay back my 401(k) loan within the 60-day period allowed. I realize this will default the loan and I will receive a 1099-R, have to pay taxes and penalties. The ...
3
votes
2answers
299 views

How safe is an option contract?

I know the Options Clearing Company guarantees the fulfillment of every option contract and it never happened that a option contract defaulted in history. So what could you imagine must happen so a ...
1
vote
1answer
86 views

How long do unpaid bills remain visible on credit report?

If one has an unpaid bill from a non-credit institution, such as a gym or a doctor's office, how long does that stay visible on the credit report?
3
votes
1answer
143 views

Default on credit report

I was wondering if anyone could help me with a situation that is giving me a lot of trouble at the minute? Back in 2011, I took a credit card with Vanquis Bank. Being young and silly, I didn't really ...
3
votes
2answers
720 views

What recourse does a credit card company have upon default?

What recourse does a credit card company have if a customer defaulted and stopped making payments in the U.S.? For example, can they: Legally force him to liquidate his assets (like his home or ...
1
vote
1answer
993 views

What happens after a counterparty defaults on a derivative trade?

I understand that counterparty risk, or the risk of the counterparty defaulting when they lose on a bet, is inherent when trading derivatives. My question is what happens after they default? Is there ...
4
votes
1answer
134 views

Do longer term bondholders get preference in getting money back when a company defaults?

When a company defaults on its debt, would the 10 year bondholders be given preference to the 1 yearr bondholders while paying out money? What is the order of preference?
3
votes
2answers
2k views

What happens if futures contract seller defaults?

I'm considering buying a put future to hedge against interest rate increase. I know there is a certain level of protection from default as required by the contract, but I assume the risk is not zero. ...
6
votes
3answers
6k views

What happens if I don't pay my rent while my lease still has time to run?

I had to move to a new apartment. My current lease is not up for 8 months. In order to terminate my lease early, the contract states that I must pay $1,000 plus the normal rent until a new tenant is ...
9
votes
3answers
19k views

Defaulting on credit cards before leaving the country

I have a colleague who is going back to his country after staying for a couple of years in US. He has 3-4 credit cards plus a personal loan. His total debt would come to around $10,000. Some days ago, ...
3
votes
2answers
3k views

What are the laws or rules on 401(k) loans and switching providers?

So here's the situation. My employer is switching 401(k) providers. I believe they outsource payroll and employee benefits to Benefits Company A. They want to switch to Benefits Company B. I ...
0
votes
1answer
195 views

EU deposit guarantee fund for failed state guarantee

I am not able to find reliable information on this topic. Generally speaking, all deposits in EU banks are secured by national guarantee fund up to about 100k. Image a national fund would fail because ...
2
votes
1answer
2k views

Who is the issuer in a derivative contract?

In the case of a bond or a share, there is a bondholder or a shareholder on one side and a company issuing the security on the other side. In a derivative contract, which party can be named as the ...
3
votes
2answers
1k views

What is the best way to pay back a(n unaffordable) private student loan?

Let's say I owe a private student loan of $50,000, and it's already been discharged to a 3rd party for collections. Monthly payments would be several hundred dollars, which is something I cannot ...
10
votes
3answers
2k views

If you buy a new home before selling the old one, what could happen from not paying the old mortgage?

I'm researching the process of selling a home and buying a new one. Several articles warn against buying the new home before the old one is sold because you may end up having to pay two mortgages. I'm ...
9
votes
2answers
514 views

Payment Dispute, Is it worth it?

3 years ago I cancelled my T-Mobile account. I was charged a $250 cancellation fee, plus the amount due at the time, totaling $376.53. Recently I was contacted by a creditor saying I owed T-Mobile ...
6
votes
4answers
1k views

Job transfer with a house I can't sell. How should I handle it?

We have a house with a 180k 1st mortgage (Huntington) and 55k 2nd mortgage (PNC). Each is from a different company. The house just appraised at 190k. I'm being transferred by my employer from ...
6
votes
2answers
331 views

Effect of country default on house prices?

What effect would a sovereign default of a European country (i.e. Italy/Greece) have on house prices of the same country that goes in default? What does the previous literature says about similar ...
2
votes
2answers
497 views

What Happens to Bank Stocks If Country Defaults

I have been looking at investing in bank stocks in a country that may default. The prices seem very low right now, even considering the risks. What truly happens to bank stocks in a country that ...
6
votes
6answers
3k views

How credible is Stansberry's video “End of America”?

So, I stumbled upon this a couple of days ago. I've shown it to several friends. I have no idea what he is advising we do about it, I haven't paid him any money, and he doesn't pay me. What I ...
9
votes
3answers
2k views

How can a person protect his savings against a country default?

I'm a middle-class citizen, currently living in a EU country (Greece in my case). How can I protect my little savings (that I currently have in a Greek bank) against a country default, like the one ...
4
votes
3answers
364 views

How could USA defaulting on its public debt influence the stock/bond market?

Ok, let's face it... US public debt is high and people are starting to wonder if the country might default on its debts. How would this hit United States' stock market, its bonds, or its currency? ...
14
votes
3answers
439 views

What exactly is a credit default swap?

I hear a lot about credit default swaps (CDSs) and I do not really know what they are. Can you please explain it to me? What are they good for?