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.
While the ratings agency is maintaining its “A-” financial strength and credit ratings of Delaware Life, it reduced its outlook to “negative” because of possible higher credit risk following changes to the insurer’s portfolio.
From Los Angeles Times ● Jul. 28, 2026
Apple can capture the lift in sales from lower-friction financing while pushing credit risk onto Klarna, Feinseth said.
From MarketWatch ● Jul. 28, 2026
The bulk of mortgage securities are issued by Fannie Mae and Freddie Mac, which are quasi-government entities whose bonds carry little credit risk.
From Barron's ● Jun. 26, 2026
High-yield bonds generally have more credit risk than investment-grade bonds.
From MarketWatch ● Jun. 2, 2026
Once upon a time, Chrysler issued a bond through Morgan Stanley, and the only people who wound up with credit risk were the investors who bought the Chrysler bond.
From "The Big Short" by Michael Lewis
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.
