counterparty risk

British  

noun

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

---

Example Sentences

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

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

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

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