0 a calculation of how likely it is that a person or company will not be able to pay back money they have borrowed from a bank or other organization:
1 the degree to which it is possible that a person, company, or government will not be able to pay back borrowed money:
2 a person, company, or government considered according to how likely they are to pay back borrowed money:
3 a person, company, or government that is unlikely to pay back borrowed money:
The next sections are devoted to the application in credit risk models.
Delayed settlement introduces credit risk-one of the parties may default.
Regulators saw the agencies' analysis as a straightforward, putatively objective framework for the regulation of financial institutions' exposure to credit risk.
Investors are exposed to the credit risk of the company providing the wrap.
For hundi/hawala agents this acts as a measure of credit risk control, militating against the risks of dealing with unknown or little known parties.
At the same time, swaps would lower transaction costs and mitigate credit risk exposure.
This article considers portfolio credit risk models of factor type.
Removal of ratings would force regulators to arrive at some alternative measure of credit risk through the typical rule-making process.