Event Types


Default is the failure to repay a principal on a loan or security. It occurs when a borrower is unable to make punctual payments, misses payments, or evades making payments. Individuals, businesses, and even countries can be subjected to default if they cannot sustain their debt obligations.

  • Default risks are usually calculated well in advance by creditors.
  • It can have consequences such as lower credit scores, reduced chances of obtaining credit in the future, and higher interest rates on existing debt as well as any new obligations.