Default Risk

What Does Default Risk Mean?
The risk that companies or individuals will be unable to pay the contractual interest or principal on their debt obligations.

Investopedia explains Default Risk
In other words, this is the risk that you will not get paid.

Related Terms

Alt-A
Bankruptcy
Credit Netting
Cross Default
Default Model
Defeased Securities
Fixed-Income Style Box
Junk Bond
Leveraged Loan
Redlining
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