default risk

- 2 dictionary results

Financial Dictionary

Default Risk

The risk that companies or individuals will be unable to pay the contractual interest or principal on their debt obligations.

Investopedia Commentary

In other words, this is the risk that you will not get paid.

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source

Financial Dictionary

default risk

The possibility that a borrower will be unable to meet interest and/or principal repayment obligations on a loan agreement. Default risk has a significant effect on the value of a bond: if a borrower's ability to repay debt is impaired, default risk is higher and the value of the bond will decline.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source

Search another word or see default risk on Thesaurus | Reference

Facebook TwitterFollow us:

About
·
Privacy Policy
·
Terms of Use
·
Careers
·
Advertise with Us
·
Link to Us
·
Contact Us

Partner Sites:

Ask Answers Evite Expedia Hotels Hotwire Life123 LiveDaily My Way