Default risk

Default risk

The risk that an issuer of debt will be unable to make the required interest payments to bondholders.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Stocks & securities
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Related terms

default risk

Financial services; General Finance

The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).

default risk

Financial services; Funds

The possibility that a bond issuer will default, i.e. fail to repay principal and interest in a timely manner. Also called credit risk.

default risk

Banking; Personal banking

The risk arising from the chance that debtors will not make promised payments either on time or in full. Also called credit risk.

Default

Financial services;

A company's failure to comply with the terms and conditions of a financing arrangement.

risk

Energy; Nuclear energy

The combined answer to three questions that consider (1) what can go wrong, (2) how likely it is, and (3) what its consequences might be. These three questions allow the NRC to ...

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.

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