Notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken. |
Similar financial terms
Notice dayA day on which notices of intent to deliver pertaining to a specified delivery month may be issued.
Default risk on bonds
Issuers that potentially run into cash flow problems, simultaneously attaches default risk to their bonds if there is uncertainty whether they can afford to pay coupons and principals. Bonds with default risk trade in the market at a price that is lower than comparable U.S. Treasury securities, which are considered free of default risk. Default risk is gauged by quality ratings assigned by recognised rating companies such as Moody’s Investor Service, Standard & Poor’s Corporation, Morningstar an ...
Cross default
Default on a loan agreement, which results in the default of the entire loan portfolio.
