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Two adverse events at the same time.

For example, a rise in interest payable on borrowings coupled with a fall in revenues.


In a typical credit cycle, as inflationary pressures rise, so central banks raise interest rates to slow demand growth.

Borrowers are therefore hit with the double-whammy of weaker demand and higher loan costs.

Kit Juckes, Head of Fixed Income Research, RBS Global Banking and Markets, The Treasurer, March 2006.

See also