Zhang Fei

Foreclosure Versus Delinquency: Either Way, Financials Will Pay

Quote: "Foreclosure is to blame for the banks'' recovery rate of 50%, a very low historical rate, as indicated by Bernanke last week."

Here's a simple-minded question - what do you mean when you write recovery rate? Is that the percentage of the principal amount of the debt recovered - i.e. a recovery rate of 50% on $1000 face value of bonds means the bondholders got $500 back?