Default

Default is a failure to meet a contractual obligation, such as paying interest or principal when due, subject to any applicable cure provisions.

Why this matters to income investors

Missed contractual obligations threaten interest receipts and principal recovery.

How to use default in your research

Read the borrower or issuer disclosures for collateral, payment priority, covenant terms, and missed payments. Then check how a deterioration could reduce interest income or the value available to support future dividends.

This material is general education and information, not individualized investment, tax, or legal advice.