Credit risk

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Credit risk
	• The risk that an issuer of debt securities or a borrower may default on his obligations or that the payment may not be made on a negotiable instrument. Related: 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.
	• Credit risk refers to the possibility that borrowers sometimes default on their promises. The risk that an issuer of debt securities or a borrower may default on his obligations, or that payment may not be made on sale of a negotiable instrument. (See overnight delivery risk.)

	Follow this link for all the terms related to credit, risk.

	Embedded terms in definition
	Clearinghouse Counterparty Credit Debt securities Debt Default risk Default Delivery Issuer Listed Overnight delivery risk Risk Sale Securities

	Related Terms
	Affiliate risk Bankruptcy risk Basis risk Business and industry risk Business risk Call risk Commercial risk Company specific risk Comparative credit analysis Completion risk Consumer credit Counterparty risk Country economic risk Country financial risk Country risk Country risk analysis models Credit Credit analysis Credit crunch Credit enhancement Credit monitoring Credit period Credit policy Credit rating services Credit rationing Credit scoring Credit scoring models Credit selection Credit spread Credit standards Credit terms Cross border risk Currency risk Currency risk sharing Default risk Demand line of credit Diversifiable risk Economic risk Equilibrium market price of risk Event risk Evergreen credit Exchange rate risk Exchange rate risk capital budgeting Exchange risk Fallout risk Federal credit agencies Financial risk Firm specific risk Five c's of credit Five cs of credit Flat price risk Force majeure risk Forecasting risk Foreign exchange fx risk Foreign exchange risk Foreign tax credit Four c's of credit Full faith and credit obligations Funding risk Geographic risk Herstatt risk Idiosyncratic risk Inflation risk Insolvency risk Interest rate risk Interest rate risk management Investment tax credit Letter of credit l/c Letters of credit Line of credit Liquidity risk Macro political risk Market price of risk Market risk Market risk return function Micro political risk Mortality risk Mortgage pipeline risk Nondiversifiable risk Nonsystematic risk Operating risk Operational risk Overnight delivery risk Pin risk Political risk Prepayment risk Price risk Product risk Purchasing power risk Rate risk Regulatory pricing risk Reinvestment risk Residual risk Retail credit Reverse price risk Revolving credit agreement Revolving line of credit Risk Risk adjusted discount rate Risk adjusted profitability Risk adjusted return Risk arbitrage Risk arrays Risk averse Risk capital budgeting Risk classes Risk controlled arbitrage Risk free asset Risk free rate Risk indexes Risk indifferent Risk lover Risk management Risk management document Risk neutral Risk of technical insolvency Risk premium Risk premium approach Risk prone Risk return tradeoff Risk reversal Risk seeking Risk transformation Risk types Riskless or risk free asset Settlement risk Shortfall risk Sovereign risk Specific risk Standby letters of credit slc's Systematic risk Systematic risk principle Theta risk Total risk Trade credit Undiversifiable risk Unique risk Unsystematic risk Value at risk Value at risk model Vega risk Volatility risk

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