default risk

Englisch - Englisch

Definition von default risk im Englisch Englisch wörterbuch: The risk that a loan customer may fail to repay a loan as promised 120, 554; Also referred to as credit risk (as gauged by commercial rating companies), the risk that an issuer of a bond may be unable to make timely principal and interest payments; Risk that a particular debtor will fail to make timely payments of interest and principal Interest rates on a debt instrument rise as the default risk increases Risk is usually determined by a ratings agency such as Moody's or Standard and Poor's; The probability that a borrower may fail to make payments of interest or repayment of principal at the scheduled time; The probability that an organization will not be able to make scheduled payments on its debt (i e Not pay as promised on a bond); Possibility that a bond issuer will fail to pay principal or interest when due; The risk that a bond issuer will cease making scheduled payments of coupons or principal or both; Same as credit risk Deferred charges - Expenses incurred but not charged against the current year's operation; Risk that an issuer will default on its fixed income obligations; the potential loss if the borrower cannot meet payments; The risk that the company issuing a bond may go bankrupt and "default" on its loans