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.
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
Core-plus total bond markets funds are where active managers are likely taking more broad credit risk for higher income.
From The Wall Street Journal • May 3, 2026
However, it is not without risk, including credit risk, liquidity risk and manager-specific risk.
From MarketWatch • Mar. 30, 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
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.
