11.   The coefficient on the default risk measure is expected to be negative, so that higher default risk reduces prices and increases yields.

12.   We have discussed interest rate risk and default risk.

13.   But to achieve these advantages, derivatives exchanges have had to devise institutional arrangements to ensure the absence of default risk.

14.   All exchanges ensure that the integrity of their clearing house is beyond question so that people may invest in their derivative products without fear of default risk.

15.   For instance, the default risk on a loan to the United Kingdom government is practically nil.

16.   First, it is generally assumed there is no default risk, the Treasury having a printing press to produce dollars.

17.   Now, because scoring can accurately predict default risk, individuals are allowed to carry a much higher amount of debt than once was thought safe.

18.   Political unrest, default risk and exchange rate swings are just some of risks that investors have to live with.

19.   The loans were used as collateral to issue bonds with no default risk.

20.   The money backing up the insurance is paid in advance, so there is no default risk to the insured.