counterparty risk

British

noun

the risk that a person who is a party to a contract will default on their obligations under that contract

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

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.

While Oracle stock initially soared on the deal, it went into an extended slump as investors evaluated the counterparty risk that OpenAI posed, along with Oracle’s own costs of fulfilling the contract should it go through.

From Barron's

While Oracle stock initially soared on the deal, it went into an extended slump as investors evaluated the counterparty risk that OpenAI posed, and Oracle’s costs of fulfilling the contract should it go through.

From Barron's

Also, the fund has very low counterparty risk, given its tenant Advanced Info Service’s strong financial profile.

From The Wall Street Journal

Moreover, improving financial health of its key tenant, True Corp., has sharply reduced counterparty risk.

From The Wall Street Journal

It also has significantly higher counterparty risk from OpenAI, Nathan Liddle, a fixed-income research analyst at Columbia Threadneedle Investments, told MarketWatch.

From MarketWatch

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023