Charged and Credit risk: Difference between pages

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1. ''Law - security - collateral.''
1.


A charged asset is one that has a security interest attached to it.
The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.


For example, land that has been mortgaged to support a borrowing.
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.




2. ''Law - lending and borrowing - security - mortgages - land.''
2.


A borrowing that is charged is one that is supported by assets collateralising it.
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.
 
For example, loan notes collateralised by security over land.
 
 
:<span style="color:#4B0082">'''''Riverside notes fully charged by issuance dates'''''</span>
 
:"In December 2020, Riverside completed its first-ever private placement deal.
 
:The security released as part of the Lloyds refinancing in March underpinned that placement, ensuring that it was fully charged by the notes’ issuance dates."
 
:''ACT Deals of the Year Awards 2020 - Riverside''




== See also ==
== See also ==
* [[Certificate of title]]
* [[Banker's payment]]
* [[Charge]]
* [[CCR]]
* [[Collateral]]
* [[Counterparty risk]]
* [[Encumbrance]]
* [[Covenant]]
* [[European Mortgage Federation]]
* [[Credit default swap]]
* [[Equity]]
* [[Credit derivative]]
* [[First mortgage debenture]]
* [[Credit exposure]]
* [[Fixed charge]]
* [[Credit risk diversification]]
* [[Forbearance]]
* [[Capital risk]]
* [[Foreclosure]]
* [[ECL]]
* [[Issuance]]
* [[Event risk]]
* [[Law]]
* [[Exchange-for-value system]]
* [[Mortgage]]
* [[High-yield]]
* [[Notes]]
* [[KMV]]
* [[Private placement]]
* [[Merton distance-to-default]]
* [[Refinancing]]
* [[Operational risk]]
* [[Security]]
* [[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:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 11:13, 24 October 2021

1.

The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.

In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.


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