Credit risk and Deflation: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Link with Stagflation page.)
 
Line 1: Line 1:
1.
''Economics''


The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.   
A situation in which prices generally are falling.   


In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
In other words, inflation is negative.
 
 
2.
 
A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.




== See also ==
== See also ==
* [[Banker's payment]]
* [[Hyperinflation]]
* [[CCR]]
* [[Inflation]]
* [[Counterparty risk]]
* [[Lowflation]]
* [[Covenant]]
* [[Stagflation]]
* [[Credit default swap]]
* [[Credit derivative]]
* [[Credit exposure]]
* [[Credit risk diversification]]
* [[Capital risk]]
* [[ECL]]
* [[Event risk]]
* [[Exchange-for-value system]]
* [[KMV]]
* [[Merton distance-to-default]]
* [[Operational risk]]
* [[Pre-settlement risk]]
* [[Price risk]]
* [[Prime bank]]
* [[Principal risk]]
* [[Putting a limit on losses]]
* [[Replacement cost risk]]
* [[Reputational risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[TED spread]]
* [[Transaction risk]]
 
[[Category:Manage_risks]]

Revision as of 14:07, 13 March 2017

Economics

A situation in which prices generally are falling.

In other words, inflation is negative.


See also