event risk


The likelihood that the rating of a bond will drop due to an event, such as the taking on of additional debt or a recapitalization by a company.

Use event risk in a sentence

The event risk was pretty low, so I knew that it was well worth the risk and knew that it would likely payoff.

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When purchasing a bond,be sure to consider the event risk which could effect the rating of the bond and its debt.

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The event risk existed because no one could predict the future and this particular project was over exposed to risk.

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