A change in ratings can strongly affect a company, since its bottom dollar of refinancing depends on its creditworthiness. Debt Negotiation Bonds below Baa/BBB (Moody's/S&P) are contemplated junk- or eminent risk bonds. Their elevated risk of default (approximately 1.6% for Ba) is compensated by exceptional absorption payments. Bad Commitment is a loan that can not (partially or fully) be repaid by the debtor. The debtor is said to default on his debt. These types of debt are frequently repackaged and sold below face value. Buying junk bonds is seen as a risky but potentially profitable form of investment.

Deflation effectively counterfeit debt fresh expensive and, as Fisher explained, this reinforced deflation again, because, in order to reduce their debt level, fiscal agents reduced their consumption and investment. The reduction in demand reduced pursuit activity and caused further unemployment. In a more direct sense, fresh bankruptcies also occurred due both to increased debt cost caused by deflation and the reduced demand.