The risk that the other party in an agreement will default. In an option contract, the risk to the option buyer that the writer will not buy or sell the underlying as agreed. In general, counterparty risk can be reduced by having an organization with extremely good credit act as an intermediary between the two parties.
Related information about counterparty risk:
- Counterparty Risk Definition | Investopedia
The risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk as a risk to both parties and should be ...
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2.1 Sovereign risk; 2.2 Counterparty risk ... A counterparty risk, also known as a default risk, is a risk that a counterparty will not pay what it is obligated to do on a ...
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The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying ...
- Getting to grips with counterparty risk - McKinsey & Company
Counterparty risk after the crisis is now in the same league as market and liquidity ... classes, which will considerably reduce counterparty risk in the short term.
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Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill their part of the deal and may default on the ...
- What is counterparty risk? definition and meaning
Definition of counterparty risk: The risk that the other party in an agreement will default. In an option contract, the risk to the option buyer that the writer will not ...
- Counterparty Risk Management Policy Group III - Home
Counterparty Risk Management Policy Group. Containing Systemic Risk: The Road to Reform The Report of the CRMPG III - August 6, 2008. Full Report [PDF ...
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Aug 20, 2009 ... 3.4 CDS counterparty risk measures. 15 ... 5 COUNTERPARTY RISK MANAGEMENT .... level, of the sources of counterparty risk and related ...