Counterparty risk: Difference between revisions

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imported>Doug Williamson
(Removed broken link to Will Spinney article)
imported>Doug Williamson
(Add narrower first definition.)
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The risk to each party to a contract that the counterparty will not meet its contractual obligations, whether they are unable, or simply unwilling, to do so.
1. ''Derivatives contracts.''
 
When a contract is in the money, the risk that the other party to the contract fails for any reason, for example bankruptcy.
 
 
2.
 
More generally, the risk to each party to a contract that the counterparty will not meet its contractual obligations, whether they are unable, or simply unwilling, to do so.




== See also ==
== See also ==
*[[Cash in the new post-crisis world]]
*[[CCR]]
*[[CCR]]
*[[CRD IV]]
*[[CRD IV]]
*[[Credit risk]]
*[[Credit risk]]
*[[Risk]]
*[[Guide to risk management]]
*[[Guide to risk management]]
*[[Cash in the new post-crisis world]]
*[[In the money]]
*[[Putting a limit on losses]]
*[[Putting a limit on losses]]
*[[Risk]]





Revision as of 10:36, 26 January 2020

1. Derivatives contracts.

When a contract is in the money, the risk that the other party to the contract fails for any reason, for example bankruptcy.


2.

More generally, the risk to each party to a contract that the counterparty will not meet its contractual obligations, whether they are unable, or simply unwilling, to do so.


See also


Other links