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credit risk

American  

noun

  1. the possibility of loss if a borrower defaults on a loan.

  2. a borrower regarded as likely to default on a loan.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The managers seek to keep the duration similar to the Agg but look for opportunities beyond the sectors in that index, which can increase credit risk.

From The Wall Street Journal • May 3, 2026

High-yield debt, also known as junk debt or non-investment-grade debt, is defined as debt that has significant credit risk or default risk.

From The Wall Street Journal • Apr. 29, 2026

Today, a lot of the credit risk has been pushed into private credit.

From Barron's • Apr. 16, 2026

At the same time, even experienced managers are not immune to market or credit risk.

From MarketWatch • Mar. 30, 2026

Stage One was to apply a formula that had been dreamed up to cope with corporate credit risk to consumer credit risk.

From "The Big Short" by Michael Lewis

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