Traditional Culture Encyclopedia - Traditional festivals - What is credit risk?
What is credit risk?
In a narrow sense, credit risk, also known as default risk, refers to the possibility that bond issuers fail to pay the principal and interest of bonds in accordance with the contract, which will bring losses to bond investors. Broadly speaking, credit risk includes not only breach of contract, but also the price change of credit bonds caused by the change of issuer's credit qualification.
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