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

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

This structure transfers some credit risk to the customers, BofA explained.

From Barron's • Mar. 24, 2026

After dropping out of residency, Attia worked as a credit risk consultant for McKinsey & Company, and later at an energy company, as a profile of him in the New Yorker notes.

From Slate • Feb. 26, 2026

I stress-tested a scenario of a pullback in equity and credit risk appetite sparked by AI anxiety.

From MarketWatch • Feb. 23, 2026

Once upon a time, Chrysler issued a bond through Morgan Stanley, and the only people who wound up with credit risk were the investors who bought the Chrysler bond.

From "The Big Short" by Michael Lewis