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.

But for financial institutions and investors, the cumulative effect is a more complex operating environment marked by higher counterparty risk, regulatory divergence, and capital inefficiency.

From Barron's • Mar. 4, 2026

While earnings contributions are long dated, the contract reduces exposure to spot market volatility and carries minimal counterparty risk, he says.

From The Wall Street Journal • Feb. 4, 2026

Key concerns include counterparty risk around OpenAI, an expansion of the balance sheet and “no communicated financing plan.”

From MarketWatch • Dec. 1, 2025

That’s just one example of the substantial counterparty risk surrounding OpenAI, which stretches from the most valuable company in the world to cloud providers to land developers to power companies to gas-turbine manufacturers.

From Barron's • Oct. 10, 2025

Managers who miss CLS's cut off will settle bilaterally, losing out on cost efficiency and risk mitigation, while heightening counterparty risk.

From Reuters • Sep. 26, 2023

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