Counterparty risk: Difference between revisions
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imported>Doug Williamson (Slight wording change. Source: Qualifications syllabus) |
imported>Doug Williamson (Add narrower first definition.) |
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1. ''Derivatives contracts.'' | |||
When a contract is in the money, the risk that the other party to the contract fails for any reason, for example bankruptcy. | |||
2. | |||
More generally, the risk to each party to a contract that the counterparty will not meet its contractual obligations, whether they are unable, or simply unwilling, to do so. | |||
== See also == | == See also == | ||
* [[ | *[[Cash in the new post-crisis world]] | ||
* [[Guide to risk management]] | *[[CCR]] | ||
* [[ | *[[CRD IV]] | ||
*[[Credit risk]] | |||
*[[Guide to risk management]] | |||
*[[In the money]] | |||
*[[Putting a limit on losses]] | *[[Putting a limit on losses]] | ||
*[[Risk]] | |||
==Other links== | ===Other links=== | ||
*[http://www.treasurers.org/node/8928 Treasury essentials: Counterparty risk, The Treasurer, April 2013] | *[http://www.treasurers.org/node/8928 Treasury essentials: Counterparty risk, The Treasurer, April 2013] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 10:36, 26 January 2020
1. Derivatives contracts.
When a contract is in the money, the risk that the other party to the contract fails for any reason, for example bankruptcy.
2.
More generally, the risk to each party to a contract that the counterparty will not meet its contractual obligations, whether they are unable, or simply unwilling, to do so.
See also
- Cash in the new post-crisis world
- CCR
- CRD IV
- Credit risk
- Guide to risk management
- In the money
- Putting a limit on losses
- Risk
