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.

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Example Sentences

Higher-end customers tend to generate more fee revenue and pose less credit risk.

From The Wall Street Journal

While explaining that Citi Research’s quantitative models would indicate a high level of risk for Delta’s stock, Godyn wrote that he didn’t assign the “High Risk” rating because of “other qualitative factors such as demonstrated margin durability, credit risk, and liquidity profile vs. peers.”

From MarketWatch

“To frame the discussion, 25 to 30 years ago, the key emergent risk was corporate credit risk,” he said, noting out that the U.S. federal government “actually ran some surpluses then.”

From MarketWatch

The growth of the private credit market, in which investors rather than bank depositors fund loans, protects bank depositors and ultimately taxpayers by transferring credit risk to people ready and willing to bear it.

From The Wall Street Journal

After the 2008-09 crisis, regulators encouraged banks to reduce credit risk and hold assets deemed safe and liquid.

From The Wall Street Journal