Default Handler implementation breaking on nbsp

I have an implementation of default handler. When it gets to a   in the character data it stops parsing. Is there any reason that it is doing this? Are there additional properties that I need to set in order for it to deal with &nbsp?

From stackoverflow

•   is not a valid xml entity. You might try replacing it with   instead, it does the same thing (non-breaking space).

  Knoth23 : It breaks/stops parsing on   as well.

• This breaks because the XML entity is not defined. You could add

  <!DOCTYPE document  SYSTEM "document.dtd" [ 
  <!ENTITY nbsp "&#160;"> 
  ]>
  

  Or just use   instead. (Note the ";" at the end)

  Also see here.