financial risk
Definition
The 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 or credit risk.
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'financial risk
' appears in the definitions of these terms on BusinessDictionary.com business risk, commercial risk, financial break-even point, red clause letter of credit (L/C), life insurance company, and
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