Credit risk is the risk of loss from a counterparty in default or from a pejorative change in the credit status of a counterparty that causes the value of their obligations to decrease.
The risk that the issuer of the security, fails to make principal or interest payments when due, or that the credit quality of the issuer falls.
the potential for loss due to the failure of a borrower to meet their financial obligation. Mining Terms
Risk of failure to pay the credit
Is the risk related to counter-party failure.
Risk that a borrower may default on obligations, thus a danger that repayment will not take place.
The risk that a party to a transaction cannot provide the necessary funds, as contracted, in order for settlement to take place. Typically, credit-risk-related losses arise from the failure or bankruptcy of a company.
A form of investment risk that is related to bond investing. The risk of an issuer of the bond failing or it's credit rating being reduced. This could involve the loss of all or part of the invested principal.
Exposure to a loss resulting from a default on a payment due. Also known as counterparty risk.
The risk that the issuer of a bond may become insolvent and default on the bonds. Rating agencies attempt to measure this risk when determining the rating they apply to a bond both at the time of issue and during the life of the bond.
The potential for default by an issuer on its obligation to pay interest or principal on debt securities. Most government securities are considered to have very little credit risk.
Risk incurred by a seller of goods that the buyer cannot or will not pay for them. See also " commercial risk," " contract risk," " financing risk," " political risk," " transfer risk."
A term used to define the risk that a bond issuer (typically a corporation or government) will default on loan repayments. Small companies without significant earnings histories, companies that defaulted on loan repayments in the past, and companies with solid histories of earnings.
A measure of how secure your investment principal may be. In connection with bonds, the term refers to the possibility that the bond issuer may default in paying either principal or interest.
The possibility that there may be a default by the issuer or other party in it financial obligations to the investor.
a risk that the bank will not be able to recover the money it is owed
The risk that money loaned to another will not be repaid. Obligations of the U.S. Government are considered to have no credit risk.
The likelihood that an individual will pay his or her credit obligations as agreed. Borrowers who are more likely to pay as agreed pose less risk to creditors and lenders.
the risk to manufacturers, wholesalers and service organizations that they will be paid for goods shipped or services rendered. Applies to that part of working capital which is represented by accounts receivables
the risk that a counter-party will not pay an amount due as called for in the original agreement, and may eventually default on an obligation.
When a consumer is known by credit history being reported to the major credit bureau's to not make timely payments on their debt, creating the possibility that a purchaser will fail to repay their principal and interest as promised.
This term is used when a lender feels that a borrower may default of their financial obligations to the investor.
The potential for loss due to the failure of a counterparty or borrower to meet its financial obligations. Credit risk arises from traditional lending activity, from settling payments between financial institutions and from providing products that create replacement risk. Replacement risk arises when a counterparty's commitments to us are determined by reference to the changing values of contractual commitments.
Failure of an issuer to make timely interest or principal payments, or a decline or perception of a decline in the credit quality of a bond, can cause a bond's price to fall, potentially lowering the fund's share price.
The idea that an outstanding currency position will not be repaid as agreed by the counterparty, either voluntarily or not. Also known as counterparty risk.
Default risk of credit obligations.
This risk usually relates to bond investments and refers to the financial soundness of the firm which issued the bonds. The higher the credit rating, the lower the expected return from interest payments because of the very high likelihood of receiving interest and principal back. (This helps most of us sleep well at night!) The lower the credit rating, the higher the bond return needs to be to attract investors, and the more uncertainty involved in collecting both interest and principal. For firms with high credit risk, and especially for bond issues in default, the principal value of the bonds can fluctuate greatly based on perceived changes in the firm's ability to repay the bondholders.
The possibility that a bond issuer may not be able to repay its debt or keep up with interest payments.
The potential loss of earnings or capital due to an obligor's failure to meet the terms of a contract or otherwise fail to perform as agreed.
The risk that there may be default on payment of interest or capital by a borrower.
An important decision-making variable for the creditor. The credit risk is derived from the previous credit history and a borrower's current situation and indicates how reliable the debtor is.
the danger that a borrower will not repay a loan. This risk always exists; the degree of risk is assessed by credit analysts and is normally reflected in the interest charged and other conditions imposed by the lender.
The possibility that an issuing organization could default on an interest payment or repayment of your principal (when the bond matures).
(a type of company risk) is the risk that a decline in a company's overall financial soundness may make it unable to pay principal and interest on bonds when due.
The possibility of bond issuer or borrower defaulting on his obligations to repay the debt.
The risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.
The risk t a particular company will default on its promise to pay creditors and to make interest and principal payments to bondholders. If a company files for bankruptcy, the court will work with creditors and management to determine the best outcome for all. If the company cannot be restructured and continue to operate, its assets will be sold. If the company's assets are sold or liquidated, creditors and bondholders are generally among the first to be paid. If any assets remain, preferred stockholders are paid, followed by common stockholders.
Usually used when referring to investment in bonds, credit ratings agencies estimate the likelihood that the issuer of the bond will not be able to keep up your interest payments or repay your capital at the end of the holding period. ‘Triple A' or ‘investment grade rated' are considered to be the lowest credit risk while non-investment grade also known as junk bonds and are rated triple B-D are the highest credit risk.
It is the risk that the issuer of a fixed income security may default on payment of interest and repayment of principal. It is also referred to as default risk.
Is the risk related to counterparty failure. It is a key concern for Over-the-Counter transactions. This compares to listed trades passing through a clearinghouse.
The risk of suffering loss due to another party defaulting on its financial obligations.
Credit risk is the risk of financial loss arising from a counterparty to a transaction defaulting on its financial obligations under that transaction. Credit risk is contingent on both a default taking place and there being a pecuniary loss as a result. The Commonwealth faces credit risk, as a part of its debt management activities, only in respect of swap counterparties in its swap derivative transactions.
The risk that the institution to which the money has been lent will not be able to repay it on maturity. In case of G-Secs, since the borrower is the Government, this risk is minimal (the Government of India has never defaulted on its debt obligation).
Risk of loss that may arise on outstanding contracts should a counter party default on its obligations.
The possibility that the company holding your money will not pay interest or dividend due, or the principal amount when it matures.
The investor's risk of not receiving back the money or interest payments expected.
The possibility that the bond's issuer may default on interest payments or not be able to repay the bond's face value at maturity.
The risk that a debtor will not repay; more specifically the risk that the counterparty does not have the currency promised to be delivered.
The possibility that a consumer will or will not repay an outstanding debt in a timely manner.
An assessment of how likely you are to fulfill the terms of a credit agreement. Most Credit ratings are designed to estimate credit risk.
The possibility that a bond issuer will default, failing to repay principal or interest as promised. "Credit risk" is also known as "default risk."
The risk to earnings or capital arising from an obligor's failure to meet the terms of any contract with the bank or otherwise to perform as agreed. Internet banking provides the opportunity for banks to expand their geographic range. Customers can reach a given bank from literally anywhere in the world. In dealing with customers over the Internet, absent any personal contact, it is challenging for banks to verify the good faith of their customers, which is an important element in making sound credit decisions.
Risk of a default by the issuer or other party in its financial obligations to the investor.
The risk that the issuer of a security, such as a bond, may default on interest and/or principal payments or become bankrupt. If either event occurs, the investor stands to lose part or all of the investment. See: Default
The risk of suffering a loss should the counterparty default on its payment obligations.
In securities lending, the possibility that a borrower may default on its obligations.
The risk that a bond issuer will not be able to repay its debt at maturity. Bond ratings by agencies like Moody's and Standard & Poor's identify the quality and risk level of bonds. Highly rated bonds tend to carry the lowest risk, while bonds with low ratings, like junk bonds, are typically the riskiest.
The chance that you might not repay your loan or credit.
The danger that a bond issuer's ability to repay what it owes will deteriorate. Usually, that prompts bonds rating firms to downgrade the company or municipality that issued your bond. An that, in turn, immediately sends the yield of the bond higher - since investors will demand more in order to justify the higher risk - and drive the price of the bond lower. Barring World War III or worse, Treasurys do not carry this risk since Uncle Sam is viewed as the world's most creditworthy borrower.
The risk that a counter-party may not meet his/her obligation in a contract. Same as counter-party risk
The chance of loss due to default or change of credit worthiness of a counterparty.
The possibility that the borrower may default on financial obligations to the investor.
The risk of nonperformance or default by borrowers on loans or other financial assets, or by a counterparty on financial contracts.
Risk that a counterparty may be unable to perform on an obligation.
Default Risk. The risk that an investor will not receive scheduled principal or interest payment. "Safety of Principal is foremost objective of Investment Program
The possibility that a purchaser will fail to repay principal and interest in a timely manner.
Credit Risk is the assessment of the financial and business risk involved in lending to particular counterparties. Relevant factors would include, but are not limited to, a company's competitive position within its industry, strategic direction, management quality and financial profile.
The measure of a person's creditworthiness. People who are more likely to repay their debts on time are considered a better risk by lenders, and will be charged lower interest rates for borrowing money.
The risk that the issuer of a security may go into bankruptcy or default on payments and cause the investor to lose all or part of his investment.
The risk that a counterparty may fail to perform on its obligations.
A term used to describe an individual's creditworthiness. Those who are considered to be a better risk by lenders are charged lower interest rates on their loans.
The risk that a debtor may not pay or may become insolvent.
The risk that a borrower, customer or Obligor will not pay on due date.
The risk that a bond issuer will default on their obligations. A function of the credit quality of the issuer.
Risk that a consumer may default on a debt or loan by not repaying the debt in accordance with agreed upon repayment terms.
The credit industry term meaning the level of risk or likelihood of future default by an individual borrower.
The threat that the issuer, or borrower, will default on its obligation. Typically, the greater the credit risk, the higher the yield must be to attract investors.
1. A measure of a bond issuer's ability to repay its principal and interest as promised; 2. An individual consumer's creditworthiness, as reported on a credit rating.
the risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. Credit risk includes replacement cost risk, principal risk and cash deposit risk.
The potential for a borrower to fail to live up to her obligations under a loan arrangement.
The possibility that the issuer of a bond could fail to repay the principal or interest due according to the issue's terms.
Risk due to uncertainty in a counterparty's ability to meet its obligations.
The possibility that a bond issuer may not be able to pay interest and repay its debt.
The risk of adverse economic consequences due to a borrower's or counterparty's inability to fulfill all or part of its obligations under a debt or other financial agreement.
The risk that the issuer of a security may default on interest and/or principal payments and cause investors to lose all or part of their investment.
The risk that borrowers will not be able to pay their debts.
The assumed risk undertaken by a financial institution that a borrower may fail to meet their obligation to repay money loaned to that borrower by the financial institution.
The risk that the cash flows due from a debt instrument will not be paid, or will be paid late.... more on Credit risk
The possibility that the issuer of a bond will not be able to make interest payments or pay back the face value of a bond to bond holders.
Credit risk refers primarily to the risk involved with debt investments, such as bonds. Credit risk is essentially the risk that the principal will not be repaid by the issuer. If the issuer fails to repay the principal, the issuer is said to default.
The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
The possibility of poor financial performance on the part of a business; also, the possibility that a borrower (an individual or a business) could be late with payments or could entirely fail to pay its obligations. Also known as default risk.
The risk that a creditor or bond issuer will not pay the interest and/or principal owed when it is due.
The risk that the bond issuer cannot meet his financial obligations.
The possibility of loss to a lender resulting from nonpayment by a borrower.
Credit risk is the risk of loss due to a debtor's non-payment of a loan or other line of credit (either the principal or interest (coupon) or both).
Credit risk, or default risk, is the risk that a financial loss will be incurred if counterparty to a (derivatives) transaction does not fulfil its financial obligations in a timely manner. It is therefore a function of the following: the value of the position exposed to default (the credit or credit risk exposure); the proportion of this value that would be recovered in the event of a default; and the probability of default. Credit risk is also used loosely to mean the probability of default, regardless of the value that stands to be lost.
http://www.edwt.org/glossary/c