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default • deface • Default Dance • Default Skin • default setting • defamation • defa • defaced • defamination • defart
Defa
credit default swap
(FINANCE) financial instrument in which buyer is someone who needs insurance against the possibility that a borrower will default on a loan. In that case, the counterparty is whoever receives the CDS premiums, and pays out in the event of default.
WHY IT'S BAD
Loans are usually made by either commercial banks (in which a loan officer is supposed to make a professional assessment of risk of default before handing over the money), or by investment banks (which underwrite securities like bonds). If the borrower has a high risk of default, then the loan should not be made--period.
Credit default swaps were a stupid method of supposedly turning a bad loan into a "risky" (and potentially high-yield) "investment"; they were in reality a strategy for fraud. Since portfolio managers knew they were bundling securitized loans that contained mostly crap, they would arrange credit default swaps and cash in when the borrowers defaulted.
WHY IT'S BAD
Loans are usually made by either commercial banks (in which a loan officer is supposed to make a professional assessment of risk of default before handing over the money), or by investment banks (which underwrite securities like bonds). If the borrower has a high risk of default, then the loan should not be made--period.
Credit default swaps were a stupid method of supposedly turning a bad loan into a "risky" (and potentially high-yield) "investment"; they were in reality a strategy for fraud. Since portfolio managers knew they were bundling securitized loans that contained mostly crap, they would arrange credit default swaps and cash in when the borrowers defaulted.
What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a "credit default swap," and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices.
{Newsweek, "The Monster That Ate Wall Street," 27 Sep 2008}
{Newsweek, "The Monster That Ate Wall Street," 27 Sep 2008}
credit default swap by Abu Yahya July 17, 2010
default dinner
Damn, the folks are coming over...mac n cheese default dinner? Maybe with hot dog chunks?
Nothing to eat kids. Can smell Jim's grill, though. Sneak over for default dinner.
Nothing to eat kids. Can smell Jim's grill, though. Sneak over for default dinner.
default dinner by msdee January 5, 2017
Default face
The look on somebody's face when they're just sitting there thinking or are doing nothing & have no other emotions. The a way a person's face naturally falls.
Everybody kept asking me if I was sad today! But, nobody understands that it's just my default face. I've just been zoned out lately.
Dude: Hey, is Shauna pissed off?
Dude 2: Nah, dude, that's just her default face.
Dude: Hey, is Shauna pissed off?
Dude 2: Nah, dude, that's just her default face.
Default face by heylobster September 1, 2009
More from Urban Dictionary
Oblication
So Joe where are you taking the kids for spring break vacation? We are going on an oblication to Boca to visit my mother-in-law.
Oblication by kimmerr May 5, 2011
Word of the Day on October 25, 2026
Surf Dracula Syndrome
A phenomenon in film/television series, most notably streaming series, where the main premise is drawn out to such a point that it takes an entire season or more to get the parts of the series the audience is actually interested in seeing.
For example, if a series is titled "Surf Dracula," a majority of viewers would tune in expecting to see Dracula surfing by the first or second episode. However, the entire first season would instead be tedious padding and backstory before finally ending with Dracula surfing in the last five minutes of the season finale.
For example, if a series is titled "Surf Dracula," a majority of viewers would tune in expecting to see Dracula surfing by the first or second episode. However, the entire first season would instead be tedious padding and backstory before finally ending with Dracula surfing in the last five minutes of the season finale.
I watched "Smallville" on Netflix the other day. Dude, it was ten seasons of filler before he finally flew! Major Surf Dracula Syndrome!
Surf Dracula Syndrome by AOmundson June 18, 2023
Word of the Day on October 24, 2026
Northstarring
Finding your way back to the truth by fixing on one verified fact and working out from there, the way you navigate by the North Star when everything around you is spinning.
Northstarring by Light Bearer October 22, 2026
Word of the Day on October 23, 2026
Plate of Brown
A plate of brown consists of foods that have little to no nutritional value, and are typically deep fried. A true plate of brown will also be accompanied by a dark soda.
Plate of Brown by Cheddar Craigson September 18, 2020
Word of the Day on October 22, 2026