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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

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Morgan Stanley’s Moore said Nvidia’s backstop for neocloud providers and sovereign AI, which he views as a credit risk, “is the next big debate for the stock.”

From MarketWatch Aug. 11, 2026

Fran Martínez López, head of risk transformation at BBVA, said an OpenAI engineer helped the Madrid-based bank build a new AI application for credit risk analysis, something his team had been working on for months.

From The Wall Street Journal Jul. 22, 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

S&P Global issued a report last week that assigned SpaceX a “BBB” credit rating, the lowest possible rating to qualify as an investment grade credit risk.

From Los Angeles Times Jun. 23, 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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