credit risk
DefinitionThe possibility that a bond issuer will default, by failing to repay principal and interest in a timely manner. Bonds issued by the federal government, for the most part, are immune from default (if the government needs money it can just print more). Bonds issued by corporations are more likely to be defaulted on, since companies often go bankrupt. Municipalities occasionally default as well, although it is much less common. also called default risk.
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credit risk is ...
... part of the Bonds subject.
... part of the Bonds subject.
Related Terms
credit derivative, factoring, financial risk, forward contract, OCC, Options Clearing Corporation, political risk, credit enhancement, credit score, forward price
credit risk appears in the definitions of these other terms on BusinessDictionary.com
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