What Is A Default?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise:Investment Banking | Private Equity

默认是当任何波的技术定义rrower fails to make a payment on their debt. This can be failure to pay interest or principal, and can be any amount. Default is usually a sign of financial difficulty and the lender losing money. The lender often asks for collateral on the loan so in the event of default, they can claim the collateral to cover their losses. A default can be classified as a technical default (when the terms of a loan agreement are broken but the payments are still made) or actual default (when payments are not made).

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Patrick Curtisis a member ofWSO Editorial Boardwhich helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis This content was originally created by memberWallStreetOasis.comand has evolved with the help of our mentors.