credit risk
Americannoun
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the possibility of loss if a borrower defaults on a loan.
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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.
Kalshi, the biggest U.S. prediction market, says they are swaps, a type of bet on a future event that Wall Street developed to address risk tied to interest rates, credit risk and currencies.
From The Wall Street Journal ● Sep. 24, 2026
While he provided two examples of municipal bonds with the lowest credit risk, Blair said that adding exposure to high-yield bonds has been a good strategy for long-term investors.
From MarketWatch ● Sep. 22, 2026
"And that could bring credit risk increasingly into the AI story, particularly for highly leveraged data-centre operators and lenders exposed to projects built on aggressive assumptions about future AI demand," she added.
From Barron's ● Sep. 14, 2026
Investors can now earn a decent income without reaching far out on the yield curve or taking on too much credit risk.
From The Wall Street Journal ● Sep. 1, 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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Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.