default 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 credit risk.
This content can be found on the following page:
default risk is ...
... part of the Lending & Credit subject.
... part of the Lending & Credit subject.
Related Terms
financial risk, OCC, Options Clearing Corporation, subprime mortgage, leading and lagging
default risk appears in the definitions of these other terms on BusinessDictionary.com
Loading...
Featured Sponsor
| |
Get our content on your iGoogle page
RSS