 |
Definition of 'Bankruptcy Risk'
The risk that a company will be unable to meet its debt obligations. Often referred to as "default" or "insolvency risk".
|
 |
Investopedia explains 'Bankruptcy Risk'
This is a risk that both equity- and bondholders take when deciding to invest in a company. Aside from looking at overall profitability, analyzing a company's debt obligations and ability to repay, agencies like Moody's and Standard & Poor's attempt to determine this risk by giving bond ratings.
|
-
Use debt securities to attack bankrupt companies and scavenge them for profits.
Read More »
-
If a company files for bankruptcy, stockholders have the most to lose. Find out why.
Read More »
-
Read More »
-
-
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
Read More »
-
Is the bond you're buying investment grade, or just junk? Find out how check the score.
Read More »
-
Investors need to know how to detect signs of looming bankruptcy. The Z-score can help.
Read More »
|
|