Default risk is a prime consideration for investors, as it directly impacts the potential return on investment. At worst, common shares of a company that has defaulted may become worthless.

The probability of U.S. corporate defaults has more than doubled in the past several years due to persistently high interest ...

The assessment of default risk is also critical in the valuation of corporate bonds and credit derivatives such as basket-default swaps. There is an important distinction between default risk under ...

The bonds are considered a safe investment. The Los Angeles wildfires sparked concern that climate change is making them risky.

A bond default occurs when a company fails to meet one or more interest payments. Higher-rated bonds offer lower returns but carry less risk of defaulting. Monitor bond ratings and issuer's ...

Ratings agencies quantify the amount of credit risk associated with bonds so investors can understand exactly what they’re getting into. When an investor purchases a bond, they are essentially ...

Johnson said, “Both asset classes are incredibly liquid and both are riskless (in terms of default risk). But, with T-Bonds, there is more interest rate risk due to the longer duration than with ...

The Daily Margin Requirement is calculated on an intra-day and end-of-day basis and should cover the clearinghouse's market risk in the case of a member default and the subsequent close-out of its ...

Consider a credit portfolio that consists of default-sensitive instru¬ments such as lines of credit, corporate bonds, and government bonds. The corresponding credit value-at-risk (VaR), is the minimum ...

The CDS spread is a market-based measure of a country’s level of default risk. For the countries with a CDS spread, we use it to determine the CFR Sovereign Risk Index value. For those without a ...