What is a debt default? And a 'haircut'?
Εκπαιδευτικά Άρθρα 27/02/2012 16:49An early sign of a possible default is when the credit rating agencies downgrade the credit rating of the country concerned to 'junk bond status' . And why are bond-holders getting 'haircuts'? A 'haircut' is a loss in the value of an investment or security.The term is currently in the news as those bond holders who lent money to the Greek government face large losses Looks like the European banks are going to be wearing their hair very short.