Default Premium

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Default premium

A differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default. Often the premium is measured as the yield over and above a government bond yield of similar coupon and maturity.

Default Premium

The return over and above the risk-free rate of return that an investor demands in exchange for accepting the risk inherent to an investment. The default premium becomes larger with greater amounts of risk. For example, an investment grade bond has a lower default premium than a junk bond, which carries more risk, but a higher premium than a Treasury security, which is riskless.

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Prima por riesgo de incumplimiento			Junk bond spreads and credit default premiums are at their lowest levels since before the Lehman Brothers collapse; but they are still well above the levels seen before the financial system began to come apart in 2007. How Long Will the Dollar Take its Cues From the Dow and Risk Trends? by Mena Report With the above reasoning in mind, our null hypothesis in testing for default premiums in bid-ask spreads for yen-dollar currency swaps is that par bond yields exceed swap rates. An empirical analysis of yen-dollar currency swap market efficiency by Malhotra, D.K.; Martin, Rand; Bhargava, Vivek / International Journal of Business This risksharing advantage translates into a lower default premium on FDI and a smaller response to changes in a country's financing constraint. International finance and macroeconomics. (Bureau News) by NBER Reporter			Deduction Deduction pour impot paye a l'etranger Deductive reasoning Deduzione deed deed books deed in lieu of foreclosure deed indented deed of reconveyance deed of trust deed poll deed restriction deed to secure debt Deep Discount Bond Deep Discount Brokerage Firm Deep in the Money Deep Market Deep Out of the Money Deep-Discount Bond Deep-in-the-Money Deep-Out-of-the-Money defamation of title default Default Interest default point Default Premium Default Risk defeasance defeasance fee defeasible fee defect in title defendant Defense Advanced Research Projects Agency Defensive Acquisition Defensive Buy Defensive Investment Strategy Defensive Securities Defensive Security Defensive Stock Deferment Period Deferred Account Deferred Acquisition Costs Deferred Annuities Deferred Annuity Deferred Call Deferred Call Period Deferred Charge deferred charges deferred commission Deferred Compensation deferred contracts			Default Credit Swap Default Credit Swaps default directory Default Display Protocol Default Domain Controllers Policy default drive default file default font Default Free Prefix Default gateway Default gateway default in performance Default interest default IP default IP address default judgement default judgement default judgement default judgment default judgment default judgment Default Maximum Transmission Unit Default Mode Network default name default on default on default option Default Option-Adjusted Spread Default Password Enumeration default point Default Premium Default Premiums default printer default profile Default Rate Calculation Default Reduction Assistance Program Default Retirement Age Default risk Default Risk Premium Default Risks Default route Default router Default Router Password Database default setting default setting default setting default setting default setting Default Signal Transmission Parameters DeFault Sort Default Supply Service Availability Charge Default Transport Session Default Unicode Collation Element Table Default Visual Environment Default XLT Format Default-free zone defaultant defaulted defaulted defaulted defaulted

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