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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.

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

From Barron's • Apr. 16, 2026

This structure transfers some credit risk to the customers, BofA explained.

From Barron's • Mar. 24, 2026

Banks have less credit risk from software companies affected by AI because they have tighter underwriting standards than those of private lenders.

From MarketWatch • Mar. 12, 2026

Close-end private credit funds however, still face credit risk if borrowers default, McKeown says.

From The Wall Street Journal • Mar. 12, 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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