Debt intolerance/Definition: Difference between revisions
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The attitude of investors to a country's [[bond]] issue arising from a belief that the country in question is more likely than | The attitude of investors to a country's [[bond]] issue arising from a belief that the country in question is more likely than other equally indebted countries to [[default (finance)|default]] on the servicing of their [[public debt]], as a result of which the [[market]]- determined [[discount rate]] on that country's bonds is increased to an extent known as a [[risk premium]]. | ||
Revision as of 00:36, 27 February 2011
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Debt intolerance [r]: The attitude of investors to a country's bond issue arising from a belief that the country in question is more likely than other equally indebted countries to default on the servicing of their public debt, as a result of which the market- determined discount rate on that country's bonds is increased to an extent known as a risk premium.