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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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It is hard to imagine Nvidia’s five-year CDS reflecting much credit risk, given how much revenue and earnings have grown in recent years and the stock’s resilience, but that is exactly what’s been happening.

From MarketWatch ● Oct. 10, 2026

One would expect a stock facing rising credit risk to see its valuation reset.

From MarketWatch ● Oct. 10, 2026

The battered share prices of private-credit funds present a buying opportunity for investors comfortable with the credit risk in the sector.

From Barron's ● Oct. 9, 2026

The company is also debuting LendScore Arc, an AI-powered credit risk model that learns from the order and timing of a borrower’s transactions.

From The Wall Street Journal ● Oct. 6, 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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