Total misunderstanding imo. A company doesn't default, when it can't uphold its promises. In fact most companies can't uphold their promises most of the time. I

Total misunderstanding imo. A company doesn't default, when it can't uphold its promises. In fact most companies can't uphold their promises most of the time. If that would be true 99% of the companies you know would be dead. A company defaults when a creditor decides to force the company into default, or a company defaults as punishment to a creditor who really needed the fulfillment of what they are owed but somehow screwed with the company owner. And companies aren't there to keep it honest. They are there to keep it dishonest. In fact it's not myCorp making a promise to yourCorp. It's me making a promise to you. But piping it through our corps means you can't harm me for not fulfilling the promise. You can only harm my corp. It's taking the punishment part out of deal making. I can promise you anything you want to hear. You can promise me anything I want to hear. And then let's see when our own goals force us to actually deliver on something.