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.
Two funds with similar yields can carry different risks—some take on more interest-rate risk by holding longer-term bonds, while others assume greater credit risk by investing in high-yield debt.
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
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
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.
