default rate
Nonpayment occurrence measure
The default rate is the percentage of borrowers who fail to meet their debt obligations within a given period.
Lenders and investors use default rates to assess credit risk: The default rate on subprime mortgages spiked during the financial crisis.
Higher default rates signal economic stress or poor underwriting standards.
- delinquencyCriminal or neglectful behavior
- foreclosureLender seizes mortgaged property
- underwater mortgageLoan exceeding property value
- bankruptcyLegal status when insolvent
- loanBorrowed money repaid later
mortgage · arrears · nonpayment · repossession · risk · subprime · junk bond · collateral · debt · lender · borrower · write-off · insolvency · collection · credit score · payment history · credit risk · risk assessment
- ratesroyalty, per diem, percentage, ratio, bond yield
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