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Credit risk - Financial definition

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Translations:      FR  risque de crédit (n.m.)     ES  riesgo crediticio (n.m.)     DE  Kreditausfallrisiko (n.n.) , Kreditrisiko (n.n.) 

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.

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