The possibility that a bond issuer will default, by failing to repay principal and interest in a timely manner. Bonds issued by the federal government, for the most part, are immune from default (if the government needs money it can just print more). Bonds issued by corporations are more likely to be defaulted on, since companies often go bankrupt. Municipalities occasionally default as well, although it is much less common. also called default risk or credit risk.
Related information about financial risk:
- Financial risk - Wikipedia, the free encyclopedia
Financial risk is an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default.
- Financial risk management - Wikipedia, the free encyclopedia
Financial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk ...
- Financial Risk Definition | Investopedia
The possibility that shareholders will lose money when they invest in a company that has debt, if the company's cash flow proves inadequate to meet its financial ...
- The Difference Between Business Risk and Financial Risk ...
Feb 14, 2012 ... The two primary risks that every company has to face on a daily basis are business risk and financial risk, and contrary to common belief, they ...
- What is financial risk? definition and meaning
Definition of financial risk: The probability of loss inherent in financing methods which may impair the ability to provide adequate return.
- What is Financial Risk?
Financial risk is the chance that a financial investment will not earn a return. Investments with a high financial risk...
- Financial risk analyst: Job description | Prospects.ac.uk
Financial risk analysts identify and analyse the areas of potential risk threatening the assets, earning capacity or success of organisations in the industrial, ...
- Home - Financial Risk Management Limited
Financial Risk Management Limited's registered office address is: 7th Floor, The Adelphi, 1-11 John Adam Street, London WC2N 6HT. Registered in England ...