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Credit risk - Financial definition
Concise definition of the term credit risk
Credit risk is the risk of suffering a loss due to a creditor's incapacity to meet his financial obligations.
Comprehensive definition of the term credit risk
Traditionally, credit risk englobes two distinct risk types: counterparty risk and issuer risk. While counterparty risk is relevant for loans and derivatives transactions, issuer risk is mostly linked to investments in bonds and other negotiable debt securities.