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.
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.
- Cash in the new post-crisis world
- CRD IV
- Credit risk
- Guide to risk management
- In the money
- Putting a limit on losses