Counterparty Risk
Noun
US
/ˈkaʊntəˌpɑːti rɪsk/
UK
/ˈkaʊntəˌpɑːti rɪsk/
US
/ˈkaʊntəˌpɑːti rɪsk/
UK
/ˈkaʊntəˌpɑːti rɪsk/
The risk that the other party in a transaction will default.
Counterparty Risk is used by financial analysts and portfolio managers for complex modeling.
Also known as: Bilateral Risk. Closely related to Credit Risk, Derivatives.
Loading video for “Counterparty Risk”…
Counterparty Risk - key concept in Advanced Finance.
Derivatives; Banking; OTC markets
Applied in Advanced Finance contexts: Derivatives; Banking