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.
High-yield debt, also known as junk debt or non-investment-grade debt, is defined as debt that has significant credit risk or default risk.
From The Wall Street Journal • Apr. 29, 2026
Today, a lot of the credit risk has been pushed into private credit.
From Barron's • Apr. 16, 2026
At the same time, even experienced managers are not immune to market or credit risk.
From MarketWatch • Mar. 30, 2026
For example, a hedge fund might borrow from one bank to take on the credit risk from another bank.
From The Wall Street Journal • Mar. 29, 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.
